Microsoft Extends Revenue Guarantee With Yahoo

Posted on May 7, 2013

Reuters reports that Microsoft has extended its revenue gaurantee with Yahoo for one year, starting April 1. The extension is the first between Yahoo and Microsoft since Marissa Mayer took over as CEO. The two companies began a 10-year deal in 2010 for Microsoft's Bing to provide search results on Yahoo and Microsoft advertising.

A Wall Street Journal story says Yahoo has been trying to get out of the deal. It says Yahoo has made less money under the Microsoft deal than it made when it used its own search technology and ads.

Yahoo did not comment on the rumors and issued the following statement through a spokeswoman: "Microsoft is an important partner, and we continue to work together to grow search share and improve monetization."

Search Engine Land explains why Yahoo is unable to break its Microsoft search partnership in the short term.

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