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Yahoo May Dump Microsoft Deal If It Falls Short

By: Andy Beal
2009-08-05

Did you know that if the revenue per search, under a Microsoft/Yahoo partnership, fails to match Googles 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!

Going Separate Ways?
Going Separate Ways?

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!

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About the Author:
Andy Beal is an internet marketing consultant and considered one of the world's most respected and interactive search engine marketing experts. Andy has worked with many Fortune 1000 companies such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian.

You can read his internet marketing blog at Marketing Pilgrim and reach him at andy.beal@gmail.com.


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