Thursday, February 18, 2010
U.S. and Europe anti-trust regulators have agree to allow Microsoft's search alliance with Yahoo.
The U.S. Department of Justice and the European Commission both approved the deal without restrictions, Microsoft said Thursday. As a result, Microsoft and Yahoo said they will put many of the deal's features into practice within days.
The most notable part of the pact will see Yahoo effectively outsource search on its Web sites to Microsoft's Bing search engine. Still, Yahoo officials insisted their company isn't abandoning search for good and will continue to invest in the technology.
Microsoft will compensate Yahoo for traffic from Yahoo's sites under a revenue sharing formula under which Yahoo will retain 88% of the search revenue generated on its pages for the first five years of the deal.
Yahoo has said it expects the arrangement to add $500 million to annual operating income and $275 million to cash flow while cutting capital expenses by $200 million.
By: DocMemory
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