Microsoft Search Deal Sees Yahoo Make Gains

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A search deal with Microsoft and Yahoo has been renewed and amended with two key changes that make the deal “more productive”, say companies

Microsoft and Yahoo have renewed and amended a partnership which improves and helps monetise Internet searches for both companies.

Originally signed in 2009, the search partnership allowed Microsoft to stick Bing ads in Yahoo desktop searches, and gave Yahoo Microsoft’s desktop search algorithm.

But the amendment today brings in new terms of the deal which benefit both parties, particularly Yahoo.

Sales

Firstly, Yahoo is now no longer responsible for the sales relationships it had to forge for Bing’s search ads. Microsoft will now take care of these, meaning Yahoo can save money on its sales force.

The updated deal also stipulates that Yahoo only has to pull a ‘majority’ of its traffic from the Bing ads marketplace. Beforehand, Yahoo had to pull all of its traffic from that marketplace. This means that Yahoo can now do what it wants with 49 percent of its search traffic, such as monetise it itself with its own ads platform Gemini or get monetisation help from Google.

Microsoft“Over the past few months, Satya and I have worked closely together to establish a revised search agreement that allows us to enhance our user experience and innovate more in our search business,” said Yahoo CEO Marissa Mayer. “This renewed agreement opens up significant opportunities in our partnership that I’m very excited to explore.”

The partnership is non-exclusive for both desktop and mobile. Yahoo will continue to serve Bing ads and search results for a majority of its desktop search traffic.

Microsoft boss Satya Nadella said: “Our global partnership with Yahoo has benefited our shared customers over the past five years and I look forward to building on what we’ve already accomplished together.

“Our partnership with Yahoo is one example of the diverse partnerships we’ll continue to cultivate in order to have the greatest impact for our customers.”

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