Tech & Biz

Yahoo and Microsoft Could Sign Search Deal Within 24 Hours

by Jon Azpiri | July 28, 2009 at 03:11 pm

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Yahoo Inc. and Microsoft Corp. appear to be moving towards a partnership that would make Microsoft's Bing search engine Yahoo's main search provider. . The Wall Street Journal has quoted sources saying that a deal could come as soon as Wednesday night.

In addition to securing a relationship between Bing and Yahoo, the new deal will establish an ad-revenue sharing agreement.

Even if they combine forces, the new Yahoo and Microsoft will still be well behind of search giant Google. The most recent comScore rankings had Google with 65 percent of market share in June. The Microsoft network had just 8.4 percent and Yahoo had 19.6 percent.

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A. Tran

at 17:09 on July 28th, 2009

The Washington Post has additional information on the potential partnership:

Yahoo CEO Carol Bartz has said that she would only agree to a deal if there were "boatloads of money" involved. There also does not appear to be a display ad component to the deal, which had previously been mentioned as a possibility.

Bartz had said that by outsourcing the company's search business to Microsoft, Yahoo would be able to save between $500 and $700 million a year. However, by still staying in the search advertising business, the savings are expected to be lower, although Yahoo will likely be able to cut down on both data center and employee costs (Already, a steady stream of its top search engineers had left the company for Microsoft).