Computer giant Microsoft Corp and Internet firm Yahoo Inc are finally set to ink the long-awaited advertising agreement by next week, according to news reports.
The search and online advertising deal between the two giants were delayed following a failed bid by Microsoft to buy Yahoo in 2008. A regulatory restriction imposed on Yahoo to advertise with Google Inc has eventually led to the deal with the computer company.
According to reports, Microsoft will pay Yahoo a huge sum of money in exchange for control over its search engine in advertising business. The deal, according to a report, will also guarantee Yahoo of certain “payments”.
But the reports also pointed that the internet giants, is most likely, will be in charge with the selling of “display advertising” to different firms.
Executives of Microsoft and other digital partners have flown in to Silicon Valley on Thursday to discuss the remaining issues that may arise during signing. Microsoft Senior Vice President of Online Audience Business Group Yusuf Mehdi said that the company will announce the merger within the week if everything went smoothly.
However, experts believe that it is still not a “done deal” especially with previous failed talks between the two companies
When sked for comments, both Yahoo and Microsoft declined to elaborate the agreement as both companies is set to report on its quarterly revenue on Tuesday (Yahoo) and Thursday (Microsoft).
In May, Yahoo Chief Executive Carol Bartz said that in order for them to achieve or to spin off search assets, the company will require a partner company with “boatloads of money”. She stressed that Microsoft is the company that can give it to them.
Bartz admitted that they are now touching base with Microsoft but refused to further elaborate the details.
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