Yahoo! Inc. (YHOO) says 31% of search revenue is from Microsoft Corporation (MSFT)
Yahoo! Inc. (NASDAQ:YHOO) has reported to the U.S. Securities & Exchange Commission that one-third of their search revenue (31%) is from a deal that they have with Microsoft Corporation (NASDAQ:MSFT), according to Bloomberg. In the past, Yahoo! acknowledged that the Microsoft deal was more than 10%. The deal generated 31% of revenue in the latest quarter.
Yahoo! Inc. (NASDAQ:YHOO) and Microsoft Corporation (NASDAQ:MSFT) made the deal in 2009. Microsoft was responsible to cover shortfalls during the first 18 months of the deal. Those guarantees have been extended twice through March 31, 2014.
Yahoo! Inc. (NASDAQ:YHOO) attempted to make a similar deal with Google in 2008, but antitrust regulations prevented them from doing that. This is why Yahoo! quickly made a deal with Microsoft. Yahoo! co-founder Jerry Yang snubbed a $44 billion acquisition offer from Microsoft several years ago.