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Microsoft and Yahoo! Agree to 10-Year Search Deal

After a prolonged courtship, Microsoft and Yahoo! an agreement to bring together the #2 and #3 players in search.  According to their official release, the pact is designed to “accelerate the pace and breadth of innovation by combining both companies’ complementary strengths and search platforms into a market competitor with the scale to fuel sustained development in search and search advertising.”   As had been rumored, Bing will serve as both the organic and paid search platform for both Yahoo and Microsoft.  Yahoo will manage the exclusive worldwide salesforce for both companies’ paid search services.  Display media will be maintained separately.

The key terms of the agreement are as follows:

The companies have established a microsite [1] to provide more information on the agreement.  There are still a number of details to be ironed out and the agreement is still pending approval from the U.S. Justice Department.  The companies are hopeful a closing can occur in early 2010.

Check back later today for some commentary, insight, and speculation on the potential impact of a Yahoo!/Microsoft agreement on the future of search.

About Alec Green

Alec serves as Mother Hen of The Search Agents, making sure contributors mind their P's and Q's and never write the seven words you can't say on television. He's been called a "social media hater" who longs for the days of door-to-door selling and advertising in the phone book.