Yahoo Takes Control of Partnership With Microsoft

This comes even as the two companies amend the partnership act, giving Yahoo more control over the display of search results.

The 10-year search partnership, crafted by former Microsoft CEO Steve Ballmer and former Yahoo CEO Carol Bartz, allowed the companies to amend or terminate it after five years.

Last month, the companies extended by 30 days the deadline to renegotiate the deal.

Earlier, Microsoft controlled how Bing displayed search results on Yahoo websites accessed on PCs.

Sale of search ads

Microsoft will now own the ads delivered from its own Bing Ads platform.

Yahoo was responsible for sales for Bing search ads.

Microsoft and Yahoo plan to transition sales responsibilities starting this summer.

Originally, the deal also included a revenue-sharing agreement where Microsoft paid Yahoo a percentage of Bing ads revenue delivered from Yahoo searches.

The companies said that the structure would remain intact.

Yahoo and Microsoft shares were down marginally in late-morning trading.

by Musalia Wycliffe

Source: Reuters