Microsoft and Yahoo Refine Their Online Search Deal

By CIOReview | Friday, April 17, 2015

FREMONT, CA: Microsoft and Yahoo realign their business collaboration on search engine as they look forward to delivering value to advertisers and providing choice to customers.

A deal that started in 2009 where Yahoo gave up on its search business and got Microsoft’s Bing platform instead. Yahoo search got an additional tagline that said “powered by” As a ten year long partnership, the aim was to reign in on Google’s supremacy over online search business that controlled 65 percent of the search across the globe. Yahoo in those times had an 18 percent market share in online search.

With renewed deal, while there are no changes in the financial transaction framework, however, amendments have been made in the form of Yahoo’s increased flexibility to enhance the search experience on any platform.

A Yahoo press release read: “Microsoft will become the exclusive salesforce for ads delivered by Microsoft’s Bing Ads platform, while Yahoo will continue to be the exclusive salesforce for Yahoo’s Gemini ads platform. Integrating the sales teams with those responsible for engineering will allow both companies to service advertisers more effectively. Microsoft and Yahoo plan to begin to transition managed advertiser sales responsibilities this summer.”

Yahoo will continue to keep 88 percent of the revenue generated from search advertisements on its websites and the remaining 12 percent is reserved for Microsoft.