Microsoft Corporation (MSFT) and Yahoo Inc. (YHOO) have made a few changes in the search partnership deal that both the companies signed in the year 2009. The deal between Microsoft and Yahoo was signed under the supervision of the then CEO of Microsoft Steve Ballmer and the former CEO of Yahoo Inc. Carol Bartz. The deal allows both the companies to make amends to the deal or terminate it after a minimum period of 5 years. The amendment to the deal comes after a period of 6 years, allowing Yahoo a firmer control over the search results.
The companies extended the deadline of renegotiation of the deal by 30 days last month. The deal was finalized today and it seems that Yahoo has gained the better part in the new version of search partnership deal. According to the reports, Yahoo will now have a major say in which the search results are displayed by Bing on Yahoo websites.
In the past, it was Microsoft who controlled the search results displayed by Bing on Yahoo websites, but from now, the Windows makers will only own the advertisements delivered on the Yahoo Websites from the Bing Ads Platform. From now onwards, Yahoo will step down from the responsibility of sales for the Bing Search ads, allowing Micrsoft complete control.
The amendment of the deal does not mean that all the original pacts have been dissolved. In fact, the deal on revenue sharing will remain intact, where Microsoft will pay Yahoo a certain percentage of the revenue collected from the Yahoo searches. The amendment of the deal also saw the fall in the shares of Microsoft and Yahoo marginally in the morning, which later stabilized.