If Yahoo! Outsources Search To Microsoft, Then They Would Save Over $1 Billion

Posted Apr 14, 2009

According to Youssef Squali, an analyst at Jefferies Yahoo! could save about $1-$1.3 billion per year if they outsource their search infrastructure to Microsoft. Not only that, but if the search company makes a 50-50 revenue sharing deal to sell display ads on Microsoft’s websites, they could bring in an additional $600-$800 million per year.

All things considered, Yahoo!’s combined savings/revenue could be about $1.6-$2.1 billion per year if they partnered with Microsoft. Yahoo! itself makes about $5 billion.

[via BusinessInsider]