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If Microsoft falters as the exclusive provider for search on Yahoo's network of Web sites--when benchmarked against Google--Yahoo can back out of the deal.
Yahoo has the right to terminate the deal signed last week "if the trailing 12-month average of the [Revenue Per Search] in the United States (the "U.S. RPS") of Yahoo! and Microsoft's combined queries falls below a specified percentage of Google Inc.'s ("Google") estimated RPS measured on a comparable basis or if the combined Yahoo! and Microsoft query market share in the United States falls below a specified percentage," according to a document filed with the U.S. Securities and Exchange Commission. That should calm a few of those who felt that with the deal, Yahoo's fortunes in the lucrative search ad market were tied to the performance of Microsoft's search technology for a decade, which is more like a century in Internet years.
View Full Article: CNET News
Yahoo has the right to terminate the deal signed last week "if the trailing 12-month average of the [Revenue Per Search] in the United States (the "U.S. RPS") of Yahoo! and Microsoft's combined queries falls below a specified percentage of Google Inc.'s ("Google") estimated RPS measured on a comparable basis or if the combined Yahoo! and Microsoft query market share in the United States falls below a specified percentage," according to a document filed with the U.S. Securities and Exchange Commission. That should calm a few of those who felt that with the deal, Yahoo's fortunes in the lucrative search ad market were tied to the performance of Microsoft's search technology for a decade, which is more like a century in Internet years.
