Yahoo, Microsoft ink search deal

SAN FRANCISCO, July 29 (Xinhua) -- Yahoo Inc. and Microsoft Corp. on Wednesday reached a 10-year Internet-search deal which the two companies said will create better choice for consumers and advertisers.

"In simple terms, Microsoft will now power Yahoo search while Yahoo will become the exclusive worldwide relationship sales force for both companies' premium search advertisers," the two said in a joint statement.

Under the deal, Microsoft's newly-launched Bing search engine will be the exclusive algorithmic search and paid search platform for Yahoo sites.

According to their agreements, Yahoo will be responsible for the worldwide sale of search ads for both companies. Each company will maintain its own separate display advertising business and sales force.

Microsoft also agreed that it will pay Yahoo 88 percent of the search revenue generated on Yahoo owned and operated sites during the first five years of the agreement.

With the addition of Yahoo search volume, the deal will give Microsoft the size and scale it needs to penetrate the Internet search market.

Microsoft started to roll out Bing at the beginning of June in the hope of reviving its Internet search business.