There was a time when MSN held a chunk of the market share and Yahoo! was the only other leader. Fast forward a decade later and we find both of these tech giants joining hands to not only stay alive but also to give Google a ‘stifle’ of a competition.
Now, Microsoft, in accordance with the internet search partnership it has with Yahoo. The previous arrangement, which made Microsoft pay Yahoo a required minimum amount per search on Yahoo’s website was over on March 31 which made analysts feel that Yahoo would be losing out on some money.
Now, Microsoft has extended the guarantee to March 2014, an extension of two years.
With the disclosure by the Yahoo regulatory filing of the extension, Yahoo shares rose by 90 cents to close at $26.07 on Tuesday. This is good news for Yahoo, with its stock closing above $26 for the first time in five years. Yahoo’s decision to make Google executive Marissa Mayer as its CEO nearly 10 months ago is surely paying dividends now.
Yahoo, on its part, didn’t reveal the terms and the minimum amount but Yahoo Chief Financial Officer Ken Goldman comment the previous month that Yahoo’s revenue can decline by as much as $60 million this year in absence of the agreement does shed light on the importance of the partnership between the two tech giants.
This is of course the second time that Microsoft has extended its guarantee, after the search partnership with Yahoo began in 2010.