Microsoft Extends Revenue Guarantee For Yahoo In The US For Another Year

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Yahoo Bing

According to the recent SEC filings from Yahoo, Microsoft has extended the revenue guarantee for Yahoo search in the US for another year from April 1, 2013.  In 2009, Yahoo entered into the Search Agreement with Microsoft, which provides for Microsoft to be the exclusive algorithmic and paid search services provider on Yahoo! Properties and non-exclusive provider of such services on Affiliate sites.

Here is the details provided in the SEC filing,

Under the Search Agreement, for each market, Microsoft generally guarantees Yahoo!’s revenue per search (“RPS Guarantee”) on Yahoo! Properties only for 18 months after the transition of paid search services to Microsoft’s platform in that market. The RPS Guarantee is calculated based on the difference in revenue per search between the pre-transition and post-transition periods and certain other factors. The Company records the RPS Guarantee as search revenue in the quarter the amount becomes fixed, which would typically be the quarter in which the associated shortfall in revenue per search occurred. In the fourth quarter of 2011, Microsoft agreed to extend the RPS Guarantee in the U.S. and Canada through March 2013. The RPS Guarantee in the U.S. and Canada expired on March 31, 2013. On April 30, 2013, Microsoft extended the RPS Guarantee in the U.S. for an additional 12 months commencing April 1, 2013

You can read the full filing here.

Source: Yahoo



About Author

Pradeep, a Computer Science & Engineering graduate.

  • SocalBrian

    The Wall Street Journal is saying that Yahoo wants out of the search deal.

    http://online.wsj.com/public/page/news-tech-technology.html

    • John

      Wall Street Journal says lots of BS. They are a very good and fine example of media being a bias and being specific companies bitch (Apple most of the times and then Google).

      I get real news from somewhere else not from WSJ.

      • SocalBrian

        Right, because some random “John” on the internet is better informed than the Wall Street Journal. So, John, what kind of sources do you have and what are they saying about this?

        • John

          I never claimed I now better or have better information than WSJ. I just said the way WSJ works and reports.

          Some random “SocalBrian” clearly getting his news from a bias source aka WSJ.

          If WSJ is your source and what you trust then I really have nothing else to say to you.

          You can keep getting your news from WSJ and as I said I get real news from some other sources where it is not full of BS and not bias the way WSJ is toward these companies.

          Have a good day some random “SocalBrian”.

  • http://byazrov.ru/ Byazrov.com

    Bing only can dream of being relevant if somehow Google goes away and it ain’t going to happen.

    • http://www.facebook.com/vanminh.nguyen.73 Văn Minh Nguyễn

      Bing already has quite a market share, as for Bing Vs. Google, Bing is more innovative and the search results are nearly identical, the only thing Google has is pop culture at this point.

  • http://www.facebook.com/vanminh.nguyen.73 Văn Minh Nguyễn

    Microsoft should just buy Yahoo! it would be a win-win situation for both, Bing could stream Yahoo!’s many services (also M.S.N.) and they could be fully integrated in the next Windows P.C. it would only be better for both.