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Microsoft and Yahoo Amend Search Deal

Yahoo gets more control over how search results are displayed.

by Reuters

Microsoft and Yahoo have amended a 2009 search partnership, giving Yahoo more control over how search results are displayed on desktops and mobile devices.

The 10-year search partnership, crafted by former Microsoft CEO Steve Ballmer and former Yahoo CEO Carol Bartz, allowed the companies to amend or terminate it after five years. Last month, the companies extended by 30 days the deadline to renegotiate the deal.

Earlier, Microsoft controlled how Bing displayed search results on Yahoo websites accessed on PCs.

Microsoft will now own the ads delivered from its own Bing Ads platform.

Yahoo was responsible for sales for Bing search ads. Microsoft and Yahoo plan to transition sales responsibilities starting this summer.

Originally, the deal also included a revenue-sharing agreement where Microsoft paid Yahoo a percentage of Bing ads revenue delivered from Yahoo searches. This structure would remain intact, the companies said.

Yahoo and Microsoft shares were down marginally in late-morning trading.

(Reporting by Devika Krishna Kumar in Bengaluru; Editing by Don Sebastian)

This article originally appeared on Recode.net.

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