Advertisement

SEC Filing Reveals Several Safety Clauses for Both Yahoo and Microsoft

  • 125
    READS
SEC Filing Reveals Several Safety Clauses for Both Yahoo and Microsoft

It looks like Yahoo has made sure that it is well protected before
entering into the search and online ad deal with Microsoft.
Information contained in the SEC filling submitted last Aug. 4 reveals
several safety clauses which would protect Yahoo from circumstances
that may affect the deal later on. Interestingly, the main target of the partnership as revealed by the SEC filing has something to do with Google’s revenue-per-share on search queries.Some of the key points stated in the SEC filing include:

  • Yahoo may terminate its partnership with Microsoft should their combined U.S. queries fall below a percentage of Google’s revenue-per-share anytime after the 5th year when the deal has taken effect
  • Yahoo may terminate the deal should Microsoft ceased from its  algorithmic search or paid search businesses
  • Microsoft to hire 400 Yahoo employees and share 90 to 93 percent of  the search ad deal
  • Microsoft to have the option to end Yahoo’s sales exclusivity for premium search advertisers during the second five years of the deal giving Microsoft a revenue rate of 93%
  • If Yahoo decides to retain its sales exclusivity, the revenue share will  be decreased to 83%
  • Microsoft to pay $150 million or $50 million annually to cover transition and implementation costs during the first three years of the deal
  • Yahoo to have full flexibility on users experience, content and look and feel on its web pagesYahoo may use Microsoft’s mapping and mobile search services
  • Microsoft to provide Yahoo its search APIs and full product road map
  • Yahoo may allow Microsoft to provide algorithmic search services and paid search services on search results pages hosted by Microsoft
CategorySEO
ADVERTISEMENT

Subscribe to SEJ

Get our daily newsletter from SEJ's Founder Loren Baker about the latest news in the industry!

Ebook

Arnold Zafra

Arnold Zafra writes daily on the announcements by Google, Ask.com, Yahoo & MSN along with how these announcements effect web ... [Read full bio]

ADVERTISEMENT
Advertisement
Read the Next Article
Read the Next