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| Version 0 | Version 1 |
|---|---|
| Microsoft and Yahoo unveil tie-up | Microsoft and Yahoo unveil tie-up |
| (20 minutes later) | |
| Yahoo and Microsoft have announced a long-rumoured internet search deal that will help the two companies take on chief rival Google. | Yahoo and Microsoft have announced a long-rumoured internet search deal that will help the two companies take on chief rival Google. |
| Microsoft's search engine will power the Yahoo website and Yahoo will in turn become the advertising sales team for Microsoft's online offering. | Microsoft's search engine will power the Yahoo website and Yahoo will in turn become the advertising sales team for Microsoft's online offering. |
| Yahoo has been struggling to make profits in recent years. | Yahoo has been struggling to make profits in recent years. |
| But last year it rebuffed several takeover bids from Microsoft in an attempt to go it alone. | But last year it rebuffed several takeover bids from Microsoft in an attempt to go it alone. |
| Microsoft boss Steve Ballmer said the 10-year deal would provide Microsoft's search engine, Bing, with the necessary scale to compete. | |
| "Through this agreement with Yahoo, we will create more innovation in search, better value for advertisers, and real consumer choice in a market currently dominated by a single company," said Mr Ballmer. | "Through this agreement with Yahoo, we will create more innovation in search, better value for advertisers, and real consumer choice in a market currently dominated by a single company," said Mr Ballmer. |
| In return for ceding control of its search engine, Yahoo will get to keep 88% of the revenue from all search ad sales on its site for the first five years of the deal, and have the right to sell adverts on some Microsoft sites. | |
| 'New era' | 'New era' |
| Yahoo said the deal would benefit Yahoo's users and advertisers. | Yahoo said the deal would benefit Yahoo's users and advertisers. |
| "This agreement comes with boatloads of value for Yahoo, our users, and the industry. And I believe it establishes the foundation for a new era of internet innovation and development," said Yahoo chief executive Carol Bartz. | "This agreement comes with boatloads of value for Yahoo, our users, and the industry. And I believe it establishes the foundation for a new era of internet innovation and development," said Yahoo chief executive Carol Bartz. |
| The deal became possible after Yahoo's co-founder Jerry Yang stepped down as chief executive of the company late last year. | The deal became possible after Yahoo's co-founder Jerry Yang stepped down as chief executive of the company late last year. |
| "Only a Yahoo outsider like Ms Bartz could do such a deal," said Tim Weber, business editor of the BBC News website. | "Only a Yahoo outsider like Ms Bartz could do such a deal," said Tim Weber, business editor of the BBC News website. |
| "She has no sentimental attachment to what was once the core of Yahoo, its search business. Microsoft was helped by the fact that at long last it managed to develop a search engine -Bing - that is a credible alternative to search giant Google." | "She has no sentimental attachment to what was once the core of Yahoo, its search business. Microsoft was helped by the fact that at long last it managed to develop a search engine -Bing - that is a credible alternative to search giant Google." |
| Yahoo said the deal would boost annual operating income by $500m and secure $200m in savings. |