Wednesday, August 5, 2009
Microsoft said it plans to hire 400 Yahoo employees as part of the companies' new plan to share revenue on Internet search advertising.
Under the deal, which was announced July 29, search results on Yahoo.com will be powered by Microsoft's technology. Yahoo, in turn, will be responsible for attracting premium advertisers.
Microsoft will pay Yahoo 88% of the revenue it gains from searches on Yahoo's sites. Microsoft will also have the rights to integrate Yahoo's search technology into its own existing Web search platforms.
To help implement the new partnership, Microsoft also agreed to pay the Internet search engine $150 million over three years.
The SEC filing revealed that Microsoft can end Yahoo's sales exclusivity deal after five years, but Microsoft would have to increase its revenue share rate to 93% for the remainder of the ten-year agreement.
The partnership is seen as a bid to challenge Google's dominance in the lucrative market for Internet search advertising.
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