Yahoo is expected to announce a deal this week that would make Microsoft's Bing its search provider, says Advertising Age (AdAge.com). If true, the deal would put Bing on more solid footing to compete with Google and rake in some additional ad revenue.
Earlier reports suggested that talks between Yahoo and Microsoft broke down after Yahoo asked for upwards of several hundred million dollars to make Bing its search provider, along with revenue guarantees that would have guaranteed billions over the course of the deal. But according to AdAge.com, talks resumed last Thursday and the two continue to hash out a deal that will be based on a revenue share rather than a lump sum payment.
Both sides stand to benefit from the potential agreement. While the upside for Microsoft is obvious, Tim Cadogan, CEO of ad-serving firm OpenX and former senior-VP of global advertising for Yahoo pointed out, "As Bing grows, the first place Bing takes share from is not Google but the other guys. So Yahoo is going to lose share unless they have something radical planned."
It appears they do.
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