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Microsoft&Yahoo Integration

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Submitted By eysinan
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Under the deal, Microsoft gets 12% of the revenue Yahoo generates from search ads that appear next to search results on its websites. Because the combined search-ad system was expected to face challenges initially, Microsoft guaranteed a certain level of revenue for every search query done on Yahoo's sites.

Jordan Rohan, an analyst at Stifel Nicholas & Co., estimated that Microsoft's revenue-per-search guarantee is worth about $12 million to $15 million per quarter.

The deal terms between Microsoft and Yahoo mean that the partnership can only be called off if either Microsoft closes or sells Bing, or if Yahoo's revenue per search falls below 40 percent of Google's.

* The deal is the next step in the 10-year Microsoft Bing and Yahoo search merger, which was announced in July 2009. Under the plan, Microsoft’s Bing search engine will power Yahoo Search and its ad sales. Microsoft will get 12 percent of revenue from Yahoo searches. In August, the two companies announced that Bing was now powering Yahoo Search.

“This will provide advertisers with the benefit of a combined marketplace through a single platform, creating a competitive alternative in search,” said David Pann, general manager of the Microsoft Advertising Search Network. “Rather than managing campaigns on Bing and Yahoo! Separately, advertisers can now reach the combined audience of both search engines by managing a single account, saving time and simplifying campaign management.”

But in all honesty, this deal is much more about Yahoo's cost structure, Microsoft's search ambitions, and advertising budgets than the user experience. Microsoft and Yahoo will still continue to provide unique user search experiences on their respective sites; the only difference is that the list of results for queries on Yahoo and Bing will be identical.

Şirketin yaklaşık 15 ay önce Yahoo'ya sunduğu 47,5

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