Report: Microsoft Days Away from Yahoo Search Deal

By  |  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.


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3 Comments For This Post

  1. Linus Towels Says:

    I once had an investment adviser whom I chose to “pick the next Intel”.

    I would have been very happy to own 4 losers for the one that went to the moon.

    But he traded in and out of stocks, mostly losing money.

    When I asked his trader what was going on, he said that when people pay for an advisor, they like to see a lot of action for their money.

    So, perhaps Ballmer needs to justify his phony-baloney job by wheeling and dealing. Makes him “look busy” … a common motto for employees of large companies.

    Then again, perhaps this signals Microsoft’s failure to build a solar powered data center in Seattle. Maybe the rain-powered data center idea never worked out right. I think it was named “Vista”

    You just never know. However, if Yahoo provides the search, no doubt, like hotmail, when the Microsoft mandate to switch the servers from Unix to Windows comes down, it will all slow down to a slug-like crawl.

  2. robert lancaster 111 Says:

    I think IE8 is the best thing that ever happen for the internet everyone knows microsoft is second to none and then there is bing and windows vista as for me iam staying with the best there is.As for all the other browsers you need to lay down and die and tell the world you did the you could

  3. robert lancaster 111 Says:

    I do not think everyone understands microsoft made the greatest browser of all time and as i understand it yahoo will be on board soon google i think your time has come have a nice after life everyone is going after microsoft i can see why who wants to be second thank you microsoft for being the best there there is

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