Yahoo gets better deal than originally reported

Jake Widman
Thursday, 06 August 2009 04:01

Business IT - Technology

Microsoft will also take care of some Yahoo employees.

According to the filing, Microsoft has agreed to hire at least 400 Yahoo employees outright, plus another 150 to help during the transition period.

Furthermore, while the deal is set to run for ten years, both sides have some ability to opt out of parts of the deal.

For example, after five years, Microsoft can allow other companies besides Yahoo to sell ads against Bing search results.

In that case, Yahoo's share of search ad revenue on Yahoo sites would rise; if Yahoo wants to maintain exclusive rights, its share will decrease.

For its part, Yahoo can end the agreement if total search traffic falls below a certain percentage of Google's, or if its revenue per search falls below some percentage of what Google gets.