Yahoo on Wednesday revealed further details about its search partnership with Microsoft in a filing with the Securities and Exchange Commission. According to the filing, Microsoft has agreed to hire no fewer than 400 Yahoo employees once the search advertising partnership begins. It will also pay Yahoo $150 million over three years to help cover Yahoo's costs for getting the partnership started.
The Web giant also revealed the terms under which the deal could be terminated. Microsoft and Yahoo may end the arrangement by July 2010 for reasons including "mutual consent", although Yahoo has a right to extend the termination date by six months if antitrust approval hasn't yet been granted. It also has the right to end the partnership with Microsoft if their combined search market share in the U.S. falls below a certain percentage of Google's-although that percentage was not specified. In addition, Yahoo could terminate the deal if the amount advertisers are paying per click on sponsored search links falls below a certain percentage of Google's, but that percentage was not specified, either.
As has been previously reported, Microsoft will provide its search technology to power Yahoo's sites, handing over 88% of any resulting search advertising revenue during the first five years of the deal. Microsoft will also hand Yahoo all user data it collects through the agreement on Yahoo's sites.