By David Worthington | Friday, July 17, 2009 at 7:07 pm
A cadre of Microsoft executives is in Silicon Valley to iron a search and online advertising deal with Yahoo, All Things Digital’s Kara Swisher is reporting.
The executives include senior vice president of the company’s Online Audience Business Group Yusuf Mehdi, Online Services Group president Qi Lu, and Online Services senior vice president Satya Nadella, according the report. The terms of the deal allegedly involve Microsoft paying Yahoo billions of dollars upfront to run its search advertising business; Yahoo will receive certain guaranteed payments.
Some sticking points have involved who will have control over data, and traffic acquisition cost rates, the report says. However, I thinkthat Yahoo will take the deal: Despite its new technology initiatives, its market share is slowly decaying.
Meanwhile, Microsoft’s Bing search engine has been received favorably, and it has managed to steal some market share away from Google and Yahoo. It is still too soon to tell whether a trend if developing (it launched last month), but Microsoft’s $90 million advertising campaign won’t hurt its chances at popularity.
Microsoft CEO Steve Ballmer is like a pit bull–he never lets go after he sets his jaws around something. There has been a persistent campaign to strike a deal with Yahoo. All Things Digital says that it could happen as soon as next week. Now we wait.