Yahoo Reveals Minor Changes To Search Deal With Microsoft

Internet company Yahoo! Inc. (YHOO) in a regulatory filing on Thursday outlined certain changes to the terms of the agreement it entered into with software giant Microsoft Corp. (MSFT) in July. The agreement was finalized last week.

As part of the finalized Search Agreement, Microsoft has agreed to reimburse Yahoo up to a total of $150 million during the period from the date the companies commence performance under the Search Agreement through June 30, 2010. The $150 million financial commitment is in addition to the payments of $50 million per year that Microsoft had already promised to pay Yahoo for the first three years of the Search Agreement.

As previously disclosed, Microsoft agreed to provide in each country an 18-month guarantee for the gross revenue per search, or RPS, for Yahoo! Properties. Under the Search Agreement, the companies agreed that Yahoo! may continue displaying pay-for-placement advertisements in Korea and Hong Kong and, if it chooses to continue to do so, the RPS guarantee would not be applicable in Korea or Hong Kong.

In the July agreement, it was said that Yahoo may opt to receive Microsoft's mobile services and implement such services on an exclusive or non-exclusive basis. As part of the finalized agreement, the two companies have negotiated the terms on which Microsoft would provide these services to Yahoo, if Yahoo chooses to receive such services on a non-exclusive basis.

YHOO closed Thursday's regular trade at $15.49, up $0.31 or 2.04%, on 18.74 million shares.

MSFT ended Thursday's regular trade at $29.87, up $0.16 or 0.54%, on 45.94 million shares.

For comments and feedback contact: editorial@rttnews.com

Follow RTT