Who got a better deal? I think its 50/50 because Yahoo does not get cash and Microsoft does not take over. Today they struck a deal for a 10-year Internet-search partnership, ending a protracted dance and uniting the rivals against Google Inc.
Under the deal, Yahoo will make Microsoft’s Bing search engine the search provider on its Web sites, licensing its own search technology to Microsoft to integrate if it chooses. Yahoo will handle sales of search ads for both companies, using Microsoft’s search-advertising technology.
There is no large upfront payment from Microsoft. Instead, the agreement is a revenue-sharing pact, with Microsoft paying Yahoo 88% of the search revenue generated from its sites during the first five years of the agreement. Read more at Wall Street Journal.