Marketing Pilgrim's "M & A" Channel

Sponsor Marketing Pilgrim's M & A Channel today! Get in front of some of the most influential readers in the Internet and social media marketing industry. Contact us today!

Emerging Details: Yahoo May Kill Microsoft Deal if it Fails to Match Google



Did you know that if the revenue per search, under a Microsoft/Yahoo partnership, fails to match Google’s estimated revenue, Yahoo can kill the deal?

Did you know that Microsoft must hire 550 Yahoo employees, whether they need them or not?

Did you know that the entire deal is in jeopardy if not completed by July 29 of 2010?

Did you know… OK, enough already!

While these fun facts might not make it into the next edition of Trivial Pursuit, they do make it into the latest 8-K filing from Yahoo. eWeek has a great recap of the fine print not previously announced, and it makes for interesting reading.

For example:

Yahoo may also terminate the deal if Microsoft exits the algorithmic search or paid search businesses. Moreover, if Microsoft decides to sell its algorithmic search or paid search services businesses, Yahoo will have a "right of first refusal and right of last offer to purchase such businesses."

Another interesting factoid. Microsoft has agreed to pay Yahoo $50 million a year, for the next 3 years, to cover transition and implementation costs. Wow! They could just throw Bing in a Yahoo IFrame and use that money to buy a boatload of over-sized Yahoo pens instead! ;-)

  • http://www.searchengineoptimizationjournal.com Nick Stamoulis

    This doesn’t surprise me at all. I’m sure there is a great deal of fine print that could cause this partnership to implode. It seems like everything is about the dollar revenues and less about the actual user. How about the visitors, what new products or benefits can we expect to see from this partnership?
    .-= Nick Stamoulis´s last blog ..How Much Should Good SEO Cost? =-.

  • Pingback: El curioso acuerdo de Yahoo! y Microsoft « ESTRATEGIA DIGITAL()

  • http://www.frankthinking.com Frank Reed

    I love this one

    Yahoo may terminate its 10-year search ad partnership with Microsoft if the revenue-per-search query rate of Yahoo’s and Microsoft’s combined U.S. queries falls below a certain percentage of Google’s estimated RPS in a 12-month average, according to a filing with the Securities and Exchange Commission Aug. 4.

    Would really like to see that certain percentage number there. That would be a real gauge of how confident they are in this thing actually working.
    .-= Frank Reed´s last blog ..Good Sales Help is VERY Hard to Find =-.

  • http://www.SocialMediaCommando.com Social Media Commando

    Not…Gonna…Happen.

    I’m sure Yahoo may have inserted an out clause regarding Ms. Bartz’s preference for organic beet juice being hand squeezed and delivered to her throne, er..office, every morning — but it’s just boilerplate.

    These two are gettin’ hitched!
    .-= Social Media Commando´s last blog ..Web Design Week: The Google “Magic Triangle” =-.

  • Pingback: Tech News From the Web - August 6, 2009 | Tech Wishlist()

  • http://www.technologyslice.com.au Technology Slice

    If Yahoo and Microsoft together can’t beat Google no one has a chance.
    .-= Technology Slice´s last blog ..Unemployment Holds Steady =-.

  • SPPK

    This deal is more of plans to take out google world dominancy rather then delivering to users. Just a try such as this for sure would never work.