Yahoo! and Microsoft have signed an alliance in the business of searching online for a period of ten years, under which Microsoft
will have access to the search engine Yahoo! reported both companies. The objective is to better compete with market leader Google.
In return Yahoo! receive 88% of all sales revenues from ads on its search site for the first five years of the agreement, and shall have the right to sell ads on some sites in
Microsoft.
Also, thanks to the agreement Microsoft can promote its own browser, Bing, in the search portal Yahoo!, While the latter will continue to use its technology and data in other areas of your business.
Yahoo! felt that the agreement will be an annual benefit to operating income of
approximately 500 million U.S. dollars (354 million) and savings in capital expenditures of approximately $ 200 million (141 million).
It also found that the alliance will be a benefit to operating cash flow of approximately $ 275 million (194 million). The companies that keep your business separate from screen advertising, indicated that the transaction is subject to approval by regulators and announced that they expect to close the terms of the agreement in early 2010.
The chief executive of Microsoft, Steve Ballmer, said the agreement will provide the Microsoft browser, Bing, the necessary scale to compete more effectively, attracting more users and advertisers, while leading to more relevant ads and add results to the search.
For its part, the executive director of Yahoo!, Carol Bartz, the alliance will provide added value to users of Yahoo! And lay the groundwork for a new era of innovation and development of the Internet.