Microsoft Now To 'Buy' Yahoo Search?
Speculation has been brewing for weeks that a collaborative search deal between Microsoft and Yahoo is as good as done. Many believe it will happen in the next 24 hours. But a source inside Yahoo took it one step further Tuesday and told Online Media Daily, "We're excited that Microsoft will buy Yahoo's search business."
This is, of course, counter to many reports saying a deal is in the final stages, making it sound like the mutual agreement everyone has been expecting ever since talks started back up. Word is the two companies have been negotiating the terms of the transaction for weeks, and lawyers have now stepped in to negotiate the final details, though it still doesn't mean it's a done deal.
TechCrunch's Michael Arrington writes that for the most part negotiations have been over an upfront payment to Yahoo, speculated at one point to be in the $500 million to $1 billion range. The size and specifics of the payment upfront have been the sticking point, including whether it is a simple payment for the deal or a guarantee on future revenues.
The Wall Street Journal reports that Bing will become the search engine on Yahoo searches. And Ad Age and BusinessWeek reports indicate that contrary to what was expected, Yahoo will not even receive any upfront payment. An announcement is expected Wednesday, barring any delays -- which, of course, at this point are to be expected.
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