Microsoft - Yahoo deal is no big deal


After months of anticipation and rumors, almost no one is surprised that Yahoo! (YHOO) and Microsoft (MSFT) are embracing in a happy search deal. The terms are still somewhat murky, but the deal appears to be set for 10-years and will take effect sometime next year. It will allow Yahoo to become the exclusive worldwide reseller for both companies' premium search advertisers. Self-service advertisers will use Microsoft's AdCenter platform and Yahoo's own Panama platform will go away. Yahoo's search team will be disbanded with part absorbed by Microsoft and part going to Yahoo's own display advertising efforts.

This deal was the Holy Grail for Microsoft CEO Steve Ballmer, a transaction he tried to do last year for a whopping $45 billion.