It’s official: Yahoo will use Bing for search

Well, it sure didn’t take long for those rumors to be confirmed. As the Associated Press reports, Microsoft and Yahoo have indeed announced a partnership that will see the former’s Bing search engine power the latter’s search portal:

The 10-year deal announced Wednesday gives Microsoft access to the Internet’s second-largest search engine audience . . . In return for turning the keys to its search engine over to Bing, Yahoo will keep 88 percent of the revenue from all ads that run alongside search requests on its site for the first five years of the deal. Yahoo also will have the right to sell search ads on some Microsoft sites.

Yahoo’s shares plunged almost 11% after the news broke, apparently because investors expected Microsoft to sweeten the pot with a meaty upfront payment. Newly minted Yahoo CEO Carol Bartz dismissed that reaction in an interview earlier today, saying, "It’s very clear that (in this deal) I get virtually all my revenue at no cost. That’s what’s important on an ongoing basis. A one-time upfront payment, what am I going to with it?"

Yahoo reportedly expects the deal to increase its operating income by $500 million while slashing capital expenditure by $200 million each year. Unsurprisingly, the AP adds that Yahoo now plans to let go an "unspecified number" of engineers.

As we wrote this morning, put together, Microsoft’s and Yahoo’s search market shares should add up to 28%. (Google has 65% of that market.) However, this new partnership could face roadblocks from regulatory authorities in the U.S. and Europe.

Comments closed
    • burntham77
    • 11 years ago

    Wild man, wild.

    • blubje
    • 11 years ago

    source for the cover image?

    *edit* nevermind, found it. §[<http://www.flickr.com/photos/yodelanecdotal/<]§ **edit 2.0** Steve Ballmer has no thumb! Am I wrong? §[<http://www.flickr.com/photos/yodelanecdotal/3768403287/sizes/o/in/set-72157621758388451/<]§ **edit 3.0** Thumbs intact....unless Carol bit it off recently. §[<http://www.flickr.com/photos/techshownetwork/3180183511/sizes/o/<]§

      • UberGerbil
      • 11 years ago

      I can say from personal observation that Ballmer has all his digits. Or at least he did as of sometime in the late 90s or early ’00s

      If he lost any fingers, it was to the DOJ.

        • MadManOriginal
        • 11 years ago

        How would he throw chairs effectively in wild monkey-man style without opposable thumbs?!? If he somehow did lose his thumbs he’d certainly get his big toes grafted on or maybe something more advanced like stem cell grown thumbs. In any case cost would be no object to keep those opposable digits for easy chair throwing tirades.

    • MixedPower
    • 11 years ago

    Bah. Double post.

    • juampa_valve_rde
    • 11 years ago

    yoo hoo, yoo hoo, yoo hoo.. (pirates from the caribbean)

    • fpsduck
    • 11 years ago

    I hope that there will be no YahHotmail.
    I don’t like Hotmail.

      • FroBozz_Inc
      • 11 years ago

      Seriously, I want my Yahoo mail and Yahoo fantasy sports stuff to stay Microsoft free, please.

    • sigher
    • 11 years ago

    I wonder if anybody feels this is good news in any way, and what such people look like and where they live and stuff, they must be some weird creatures.
    But it can’t harm for google to have something to compete with I guess, keeps them on their toes and perhaps prevents them going too snotty and callous about their users.

      • computron9000
      • 11 years ago

      I don’t use Yahoo or Bing. I tested Bing’s flight cost predictor though. Very cool.

    • PRIME1
    • 11 years ago

    YahBingHoo.

      • ClickClick5
      • 11 years ago

      lol, sounds like Ubuntu in a way.

      • Wirko
      • 11 years ago

      YBaihnogo! —> leave out the part you can’t pronounce —> Nogo!

    • Nitrodist
    • 11 years ago

    Why aren’t any of the pictures for stories featured in a slideshow at the bottom of the article or in the article somehow?

      • Palek
      • 11 years ago

      I’ve been wondering that, too. It seems impossible to find the cover photo for a news entry unless it happens to be selected as the featured article. Do I just click refresh until the article cycles to the top? How about older articles?

      • JustAnEngineer
      • 11 years ago
    • ssidbroadcast
    • 11 years ago

    HAhahaha, man, that cover image…

    and people make fun of /[

      • Krogoth
      • 11 years ago

      Where’s the chair?

      • blubje
      • 11 years ago

      I guess money makes people smile.

      That being said, I like bing and google’s home pages: they’re just the search, not the “celebrity photos” and such trash.

      • MixedPower
      • 11 years ago

      EDIT: Dead link. Move along…

        • Meadows
        • 11 years ago

        A dead link, how impressive.

        • ssidbroadcast
        • 11 years ago

        r[<*[<404'D<]*<]r

    • Krogoth
    • 11 years ago

    MS is slowly assimilating Yahoo……..

    • ludi
    • 11 years ago

    “Yaaaahh…HHOOOO~OO~OOO~OO~OO /[

      • glacius555
      • 11 years ago

      You must be from Texas!

      • ImSpartacus
      • 11 years ago

      What ever happened to those damn commercials?

        • axeman
        • 11 years ago

        Apparently they ran out of money for pointless advertising?

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