AP source confirms Microsoft, Yahoo on verge of sealing long-awaited Internet search deal
By Jessica Mintz and Michael Liedtke, AP Technology Writers, On Wednesday July 29, 2009, 1:10 am EDT
SEATTLE (AP) -- Microsoft Corp. appears to have finally persuaded Yahoo Inc. that together they would have a better chance of mounting a meaningful challenge to Google Inc.'s dominance of online advertising.
Details of a long-rumored Microsoft-Yahoo alliance were expected to be announced Wednesday, a person with knowledge of the talks told The Associated Press. This person spoke Tuesday night on condition on anonymity, confirming earlier reports, because the deal was not yet final.
The deal does not appear to call for Microsoft to pay Yahoo in advance, which could disappoint its investors. Yahoo Chief Executive Carol Bartz had said she would join forces with Microsoft only for "boatloads of money."
Instead, the companies would share revenue generated by search ads on their Web sites. Yahoo would use Microsoft's search engine, Bing, and it is likely -- though not certain -- that a "powered by Bing" message will appear on Yahoo's highly trafficked pages, according to the person who described the talks to the AP.
“For everyone who's ever been counted out, but refused to be knocked out, and for everyone who works hard and never gives up, this one is for you.” - Hillary Rodham Clinton
The 10-year deal announced Wednesday gives Microsoft access to the Internet's second-largest search engine audience, adding a potentially potent weapon to the software maker's Internet arsenal as it tries to better confront Google, the leader in online search and advertising.