- 10 year deal
- Microsoft's Bing will now power Yahoo search
- Yahoo will sell ads across both companies websites
- Self serve advertising will be through Microsoft's AdCenter
- Each company keeps own display ad business and sales force
- Microsoft will compensate Yahoo through revenue sharing scheme
- Microsoft will give Yahoo 88 per cent of search revenue generated on Yahoo's sites during the first five years of the agreement
- Microsoft will guarantee Yahoo's revenue per search (RPS) in each country for the first 18 months
- At full implementation (expected to occur within 24 months following regulatory approval), Yahoo is expected to earn $500 million with savings of $200 million.
- Yahoo can also expect annual operating cash flow of $275 million
- The agreement does not cover each companies other web properties (email, instant messaging, display advertising) In those areas, the two will continue to compete
- Microsoft's search share increased from 8.02 per cent in May, when its engine was still Live Search, to 8.4 percent in June with Bing (comScore)
- Yahoo's market share in June was 19.5 per cent, while Google still dominates at 65 per cent
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