14 DAY TRIAL // After years of talks it looks like a Microsoft-Yahoo deal may be on its final stretch, with several reports claiming an announcement could come in as soon as tomorrow. The papers haven't apparently been signed yet but there aren't many things that could change the course now. The deal is smaller than some of the earlier proposed ones but it will still have a significant impact for both companies and the Internet as a whole.
Some of the most important details of the deal have surfaced but, as they don't come from an official source, they may not be final. In the partnership Bing will become the search engine used by both companies though it's unclear whether Yahoo Search will use the branding as well, though some reports claim this, or how the visible aspects of the site will change.
However, Yahoo will actually handle all of the advertisement deals for both Yahoo Search and Bing and, according to the Wall Street Journal, possibly other Microsoft sites. But, while Yahoo will be supplying the ads, the underlying technology used will be Microsoft's AdCenter platform. Display ads will, apparently, not be part of the deal, as previously believed.
Surprisingly, but confirming the later reports, Yahoo will not receive an up-front cash payment for the deal so, most likely, Microsoft has made some significant revenue guarantees as Yahoo CEO, Carol Bartz recently said a deal between the two giants would only come if her company got “boatloads of money.”
Still the deal is likely to provide significant savings for Yahoo, which has been the company's major focus and reason behind a partnership. Earlier, Bartz claimed that getting out of the search business altogether could save the company $500 to $700 million a year; however, since Yahoo will still handle the advertising, the sum is likely lower but, coupled with the guaranteed revenue, it could still have a positive impact on Yahoo's bottom line.