Reports: Yahoo & Microsoft Very Close On Search Deal

There are several reports tonight that Yahoo and Microsoft are close to consummating a search and advertising deal. 24/7 Wall Street cites an investment banker who says a deal is “imminent.” All Things Digital says an agreement is “down to the short strokes,” but also points out that the companies have been down this road before.

Both reports speculate that the deal will include a large upfront payment to Yahoo — the “boatloads of money” that Yahoo CEO Carol Bartz has said a deal would require — and additional future payments in exchange for Microsoft taking over Yahoo’s search and search advertising business. 24/7 Wall Street cites sources who say Yahoo will get $3 billion upfront.

All Things Digital reports that several high-level Microsoft executives, including Yusuf Mehdi, Satya Nadella, and Dr. Qi Lu, were in the Silicon Valley on Thursday to try closing the deal. Their source also says that this is the end of the road for the long-running talks between Microsoft and Yahoo, and if no deal is reached “we will all finally go our separate ways and be done with it.”

Related Topics: Channel: Industry | Microsoft: Business Issues | Yahoo: Business Issues


About The Author: is Editor-In-Chief of Search Engine Land. His news career includes time spent in TV, radio, and print journalism. His web career continues to include a small number of SEO and social media consulting clients, as well as regular speaking engagements at marketing events around the U.S. He recently launched a site dedicated to Google Glass called Glass Almanac and also blogs at Small Business Search Marketing. Matt can be found on Twitter at @MattMcGee and/or on Google Plus. You can read Matt's disclosures on his personal blog.

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