Yahoo try and end Microsoft search deal

 

Yahoo and Microsoft Yahoo is reportedly trying to end a 10 year search deal with Microsoft so they can join forces with Google.
 
Reports come after Yahoo and Microsoft have extended their revenue per search guarantee. Yahoo has been in agreement with Microsoft since 2009, the partnership was formed so both search engines could rival Google.
 
Bloomberg have reported that Marissa Mayer (Yahoo CEO) has been attempting all year to terminate the contract with Microsoft.
 
Reports also indicated that Mayer who previously worked for Google had already entered into agreement with her previous employees, if she was successful with the termination of the search partnership with Microsoft.
 
Wall Street Journal reports:

“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. The regulatory filing says the revenue guarantee expired on March 31, but Microsoft on April 30 agreed to extend it for an additional 12 months.”
 
“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 current partnership deal between Yahoo and Microsoft can only be terminated if Microsoft closes or decides to sell Bing.

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