Microsoft Extends Search Guarantee in Yahoo Deal
By Sylvia Ramirez
Tue May 7th, 2013 12:34pm America/Los_Angeles
SAN FRANCISCO – Microsoft has extended a guarantee that provides Yahoo with financial protection as part of the two companies’ Internet search partnership.
An arrangement requiring Microsoft Corp. to pay Yahoo Inc. a minimum amount per search on Yahoo’s website expired March 31. That had raised concerns Yahoo might make less money from the Microsoft partnership.
Those worries eased Tuesday with a regulatory filing that disclosed Microsoft is maintaining the revenue-per-search guarantee through March 2014.
Yahoo’s stock gained 86 cents, or 3.4 percent, to $26.03 in afternoon trading. It’s the first time the stock has been above $26 in nearly five years.
Under a 10-year alliance that began in 2010, Microsoft provides its search technology to Yahoo in exchange for 12 percent of the revenue from search ads on Yahoo’s site.
(Copyright 2013 The Associated Press. All rights reserved.)