Microsoft continue revenue guarantee with Yahoo

Yahoo and Microsoft have extended their revenue-per-search (RPS) guarantee for one year which started April 1st, reports CNet.

In 2009, Yahoo and Microsoft signed a 10 year licensing agreement, which allows Microsoft Bing to power Yahoo's Web search .The deal allows Yahoo to control the look of its own search site, but the Bing search engine provides the results.

The new contract extension is for one year, and began on April 1 according to Tuesday’s 10Q filing with the Securities and Exchange Commission. The search partnership guarantees Yahoo 18 months of revenue per search for ads that appear on the wide network of Yahoo sites.

It is surprising that Yahoo signed on for this extension, as Mayer wasn’t happy with this search deal. She felt that Yahoo and Bing shared the same search market share, rather than cutting into Google’s market share.


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