The extended reach will allow Microsoft to introduce its recently upgraded search engine, called Bing, to more people. The Redmond, Wash.-based software maker believes Bing is just as good, if not better, than Google's search engine. Taking over the search responsibilities on Yahoo's highly trafficked site gives Microsoft a better chance to convert Web surfers who had been using Google by force of habit.
In return for turning over the keys to its search engine, Yahoo will get to keep 88 percent 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 ads on some Microsoft sites.
Yahoo estimated the deal will boost its annual operating profit by $500 million and save the Sunnyvale, Calif.-based company about $275 million on capital expenditures a year because it won't have to invest in its own search technology.
More money-related links:
- Save money with Local Coupons
- Coupon Bug helps you save cash
- Saving with 6abc reports
- Share on the Saving with 6abc Message Board
- Track your stocks
- Follow Action News on Twitter
- Get Action News on your website
- Follow Action News on Facebook
- The latest Philadelphia headlines from the Delaware and Lehigh valleys
