Printed from http://www.electronista.com

Microsoft extends revenue-per-search guarantee to Yahoo for one year

updated 04:10 pm EDT, Tue May 7, 2013

Analyst increases Yahoo gross revenue estimate by $60M

Microsoft has extended its revenue guarantee with Yahoo, according to an SEC filing. The revenue-per-search guarantee, part of the ten-year deal the two companies struck in 2009, will be extended by one additional year, allowing Yahoo to earn more revenue than it otherwise would have if the guarantee fully elapsed.

The guarantee makes sure that Yahoo will receive a minimum amount of funds from Microsoft for each search, regardless of the performance of its search ads. Originally set to last for 18 months, the guarantee was extended in 2011 to last until March 2013, with Reuters reporting it having been extended for another full year from April 1st. The extension is extremely useful to Yahoo, as its present advertising rates for search are lower than when the deal with Microsoft was struck.

UBS analyst Eric Sheridan has increased his estimates for gross revenue for the next four quarters, valuing the extension at around $60 million for the entire year.

Despite the guarantee extension, current Yahoo chief executive is hoping to reverse the company's multi-year revenue and traffic decline. "We need to see monetization working better because we know that it can and we've seen other competitors in the space illustrate how well it can work," said Mayer to an investor conference earlier this year.

The partnership, initially minted while Yahoo was being managed by Carol Bartz, would in theory have allowed the two companies to work together against Google in search, though the relative market share of the three services have remained relatively static.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

ActvContent Sync Smartband

Smartbands of all sorts are hitting the market. Some build on the buzz around fitness trackers, while others offer simpler features fo ...

RocketStor 6324L Thunderbolt 2 eSATA bridge

Like it or not, the shift to Thunderbolt is underway. The connection is extremely flexible, allowing for video and data to co-habitate ...

Patriot Stellar Boost XT 64GB USB 3.0 drive

A vast selection of USB memory sticks means that consumers can often find exactly the size drive they need in a configuration that can ...

Sponsor

toggle

Most Commented

 
toggle

Popular News