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Sunday, September 13, 2009

Review on Microsoft-Yahoo Deal

Microsoft Corp. and Yahoo! Inc. have been asked by the U.S. Justice Department for more details on a proposed Internet-search partnership. The companies expect to be asked about their search-engine investments, ad pricing and product plans.image

The outcome will shape the future of the market for Internet search ads.

Under the partnership, signed in July, Yahoo will use Microsoft’s Bing search engine on its Web sites. Yahoo will sell ads that appear next to Web-search results, with the companies splitting the revenue.

Microsoft expects to be asked to disclose its spending on Bing to ensure the company made enough investments to create a viable product.

How the companies’ online-ad auctions operate and what might happen to prices as a result of the combination.

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