Yahoo
and Microsoft will keep working together on Internet search, but Yahoo
is getting more control over the how the search results are presented.
An
agreement announced extends a search partnership that Yahoo Inc. and
Microsoft Corp. forged in 2009 while they were being led by different
CEOs. Current Yahoo CEO Marissa Mayer had the option of terminating the
relationship under a clause triggered earlier this year.
The
two are trying to chip away at Google’s dominance of Internet searches.
They haven’t had much success so far. Google still controls two-thirds
of the U.S. search market and holds an even larger share in Europe.
Mayer spent 12 years helping Google build its lucrative lead in before
becoming Yahoo’s CEO in 2011.
As
has been the case since the companies formed their alliance,
Microsoft’s technology will power most of the search results on Yahoo’s
sites. In return, Yahoo will receive most of the revenue from the ads
posted alongside the search results on its sites.
The
original deal called for Microsoft to pay 88 percent of the search
revenue to Yahoo. The ad commission rose to 90 percent in late February,
according to regulatory filings. The companies said their economic
arrangement won’t change under the revised agreement.
The
revised contract gives Yahoo more control over the how its search page
looks and works. There will be a few differences in how the companies
sell ads under the new agreement.
Investors
evidently don’t think much is going to change. Yahoo’s stock gained 5
cents to close Thursday at $45.78 while Microsoft shares shed 10 cents
to close at $42.16.
Posted by : Gizmeon
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