Posted on December 5, 2009 by valeri

Search engine Yahoo! Inc. and Microsoft Corporation have announced today that the companies have finalised and executed the definitive Search and Advertising Services and Sales Agreement and License Agreement.

Some key terms of the agreement includes:

• Microsoft will acquire an exclusive 10 year license to Yahoo!’s core search technologies
• Microsoft’s Bing will be the exclusive algorithmic search and paid search platform for Yahoo! sites.
• Yahoo! will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers.
• Each company will maintain its own separate display advertising business and sales force.
• Microsoft will guarantee Yahoo!’s O&O revenue per search (RPS) in each country for the first 18 months following initial implementation in that country.

The companies released the following statement:

“Microsoft and Yahoo! believe that this deal will create a sustainable and more compelling alternative in search that can provide consumers, advertisers and publishers real choice, better value, and more innovation.

“Yahoo! and Microsoft welcome the broad support the deal has received from key players in the advertising industry and remain hopeful that the closing of the transaction can occur in early 2010.”