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It looks like Marissa Mayer drove a pretty hard bargain with Microsoft

posted onApril 21, 2015
by l33tdawg

Last week, Marissa Mayer took a big step toward undoing one of her predecessor's business deals by renegotiating Yahoo's search contract with Microsoft.

On Monday, the company filed a document with the SEC that gives some new details. It looks like Mayer drove a pretty hard bargain, and it could set Yahoo up to make more money from the search results it delivers.

Specifically:

  • When Yahoo runs a Bing ad on its site, it keeps 93% of the gross revenue before affiliate payouts. Previously, it kept 88% of the net revenue (after affliate payouts) during the first five years of the agreement, and 90% of the net from February of this year, when the two companies first started negotiating.

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