Microsoft and Yahoo! could agree revenue sharing deal
Microsoft and Yahoo! have agreed a search and advertising deal that will be announced later today, according to reports.
It is understood that the deal, which comes after Microsoft’s unsuccessful bid to buy Yahoo! last year (see Microsoft dismisses potential deal with Yahoo!), focuses on revenue sharing.
US technology blog AllThingsD reported that for the first two years, Yahoo will keep 100% of the revenue plus an additional 10%, and 90% in the third year.
The deal aims to put Microsoft at the number two spot in the US search ad market by the fourth year.
The partnership will also see Microsoft’s new search engine, Bing (see Microsoft to unveil Bing search engine this week), become the default search engine for Yahoo!.