SUNNYVALE, Calif.â€“(BUSINESS WIRE)â€“Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, announced today that it has reached an agreement with Google Inc. that will enhance its ability to compete in the converging search and display marketplace, advancing the companyâ€™s open strategy. The agreement enables Yahoo! to run ads supplied by Google alongside Yahoo!â€™s search results and on some of its web properties in the United States and Canada. The agreement is non-exclusive, giving Yahoo! the ability to display paid search results from Google, other third parties, and Yahoo!â€™s own Panama marketplace.
Under the terms of the agreement, Yahoo! will select the search term queries for which â€“ and the pages on which â€“ Yahoo! may offer Google paid search results. Yahoo! will define its usersâ€™ experience and will determine the number and placement of the results provided by Google and the mix of paid results provided by Panama, Google or other providers. The agreement applies to paid search and content match and does not apply to algorithmic search. The agreement also applies to current partners in Yahooâ€™s publisher network. [...]
Terms of the Agreement
The agreement will enable Yahoo! to run ads supplied by Googleâ€™s AdSenseâ„¢ for Search and AdSenseâ„¢ for Content services next to Yahoo!â€™s internally generated paid search and algorithmic search results. Yahoo may also run Google-supplied ads on non-search Yahoo web properties, as well as on current members of its partner network. The agreement has a term of up to ten years: a four-year initial term and two, three-year renewals at Yahoo!â€™s option. It applies to Yahoo!â€™s operations in the U.S. and Canada only. Advertisers will continue to pay Yahoo! directly for clicks served by Yahoo! from Yahoo!â€™s Panama and Content Match marketplaces. Advertisers will pay Google directly for each click on Google paid search results appearing on Yahoo! owned and operated network or certain affiliate sites. Google will share a percentage of such revenue with Yahoo!.
In addition, Yahoo! and Google agreed to enable interoperability between their respective instant messaging services, bringing easier and broader communication to users.
The agreement allows either party to terminate the agreement in the event of a change in control of either party. The agreement also requires Yahoo! to pay a termination fee if the agreement is terminated as a result of a change in control that occurs within 24 months. The termination fee is $250 million, subject to reduction by 50 percent of revenues earned by Google under the agreement.