Microsoft Corp.’s technology is now processing all the search requests on Yahoo Inc.’s website in the U.S. and Canada, completing a long-awaited leap that creates a more formidable challenger to Google Inc. in the most lucrative part of the online advertising market.
Tuesday’s shift marks the biggest step yet in a partnership that Microsoft and Yahoo forged 13 months ago after spending years trying to catch up to Google on their own, only to fall further behind.
Microsoft eventually will fuel Yahoo’s search engine throughout the world, but the transition in other countries won’t occur until next year and 2012. The technology in the U.S. and Canada will only field requests made in English for now, with other languages expected to be added in the next few weeks. The deal doesn’t affect Yahoo Japan Corp., a separately run company that plans to rely on Google’s search technology.
Since regulators approved their alliance six months ago, Microsoft and Yahoo have been scrambling to get their systems to work cohesively in the U.S. so that they would be able to capitalize on the advertising blitz that heralds the holiday shopping season in November and December. Now that Bing is powering Yahoo’s search requests, Microsoft’s next challenge is getting its marketing service ready to serve up ads alongside Yahoo’s search results before the holidays. Yahoo is providing the ads for now.
By leaning on Microsoft’s Bing search engine, Yahoo plans to dramatically lower expenses and focus on other products as it tries to snap out of a financial funk that has depressed its stock price.
Yahoo will sell some ads initially and will use Microsoft’s technology to display them. During the first half of the 10-year partnership, Yahoo will get 88 percent of the ad revenue from search requests on its website. After that, the commission could fall to as low as 83 percent or as high as 93 percent, depending on which company handles sales with the top search advertisers.
Microsoft tried to take advantage of Yahoo’s problems in 2008 when it offered to buy its rival for $47.5 billion, only to withdraw the bid when the two sides kept quibbling over the price. That’s a decision that Yahoo investors and even the company’s current CEO, Carol Bartz, have lamented, with Yahoo’s stock price trading far below Microsoft’s last offer of $33 per share. Yahoo shares fell 18 cents to $13.47 in Tuesday’s afternoon trading while Microsoft shares declined 14 cents to $24.14.
As it picks up more traffic from Yahoo, Microsoft hopes to get a better understanding of people’s search requests and establish Bing as a more compelling alternative to Google. If it can pull that off, Microsoft will be in a better position to finally start making money in its online division, which has lost $4 billion combined in the company’s last two fiscal years alone.
Combined, Microsoft and Yahoo hold a 28 percent share of the U.S. search market, still far behind Google’s 66 percent, according to comScore Inc.
Even though Microsoft will be powering Yahoo’s search engine, Yahoo says its search results won’t look identical to those at Bing. That’s because Yahoo’s engineers can still tweak the results to serve up unique twists, such as different pictures or suggestions, developed by the company.
Angelina Jolie and Brad Pitt Reach Divorce Settlement After 8 Years
Angelina Jolie and Brad Pitt have reached a divorce settlement, ending one of the longest and most contentious divorces in Hollywood history but not every legal issue between the two.
Jolie and Pitt signed off on a default declaration filed in Los Angeles Superior Court on Monday, saying they have entered into a written agreement on their marital and property rights. The settlement was first reported by People magazine.
"More than eight years ago, Angelina filed for divorce from Mr. Pitt," Jolie's attorney, James Simon, said in a statement. "She and the children left all of the properties they had shared with Mr. Pitt, and since that time she has focused on finding peace and healing for their family. This is just one part of a long ongoing process that started eight years ago. Frankly, Angelina is exhausted, but she is relieved this one part is over."
The filing says they give up the right to any future spousal financial support, but gives no other details. A judge will need to sign off on the agreement. An email late Monday night to Pitt's attorney seeking comment was not immediately answered.
Jolie, 49, and Pitt, 61, were among Hollywood's most prominent pairings for 12 years, two of them as a married couple. The Oscar winners have six children together.
Jolie filed for divorce in 2016, after a private jet flight from Europe during which she said Pitt physically abused her and their children. The FBI and child services officials investigated Pitt's actions on the flight. Two months later, the FBI released a statement saying it would not investigate further, and the U.S. attorney did not bring charges.
A heavily redacted FBI report obtained by The Associated Press in 2022 said that an agent provided a probable cause... Read More