MediaFile

Microsoft-Yahoo provide a closer look at ad deal

August 5, 2009

By most accounts, the 88 percent revenue share Yahoo will collect from its advertising partnership with Microsoft is a pretty darn good number. Obviously, 90 percent is even better. And that’s exactly the share of revenue that Microsoft will pay Yahoo in the second half of their 10-year deal, according to a regulatory filing.******The filing casts more light on the details of the partnership. It also seemed to give a lift to Yahoo, whose stock rose slightly in early trade.******Here are five other key points from the filing …***

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  1. At least 400 Yahoo staffers will join Microsoft. The two companies will select an extra 150 employees to help with Yahoo’s transition to Microsoft’s search technology.
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  3. A definitive agreement is due to be signed by October 27, or they head for an arbitration panel.
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  5. Microsoft is paying Yahoo about $50 million a year during the first three years of the deal to help with transition costs.
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  7. The deal is limited to web sites, applications and “other online digital properties designed for use and consumption on personal computers.” But Yahoo can receive Microsoft mapping and mobile search if it wants.
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  9. Yahoo can kill the deal if the Yahoo and Microsoft’s share of the U.S. query market falls below a certain level. Either party can terminate the deal due to repeated material breaches of the agreement.
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***If you want more information on these provisions, or others, have a look here.******Keep an eye on:***

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  • What’s the Wall Street Journal’s policy when it comes to story embargoes? PaidContent has the latest rundown (paidContent.org)
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  • Google is doing a little wheeling and dealing. It is buying On2 Technologies, and has sold its Google Radio Automation business (Reuters)
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  • Sirius XM Radio’s stock has been on a run this week. Seems that investors are looking past what will likely be quarterly loss and focussing instead on new initiatives like “cash for clunkers” (Reuters)
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  • Looking for a less expensive digital book reader? Sony’s hoping to please (Reuters)
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***(Photo: Reuters)

Comments
2 comments so far | RSS Comments RSS

My thanks to Paul Thomasch for this high quality reporting.

Posted by sean | Report as abusive
 

If Yahoo and Microsoft together can’t beat Google no one has a chance.

 

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