Everyone in the SEO industry has been waiting, watching, looking forward to, or cringing over the news released over the summer that Yahoo would begin using Microsoft’s Bing Search Technology to power their search engine.
This, I feel, spells the end of Yahoo as a force in search and immediately gives Microsoft what it has always wanted…access to Yahoo’s search volume and visitor loyalty.
But Yahoo sent documents to the SEC yesterday stating that the deal has stalled. It was set to be finalized earlier in the week. Yahoo told Silicon Alley Insider that they hoped the deal would be finalized in early 2010.
What does this mean? Is the deal still going through? Did Yahoo realize what a monumental mistake they had made by giving the farm away to Microsoft and are they now trying to worm their way out of the deal?
Whatever it is, it’s pretty exciting to us SEO fools, and worth taking some time to look into.
First of all, what exactly did Yahoo say in their SEC filings?
Item 7.01. Regulation FD Disclosure.
Extension of Negotiation Period to Enter Into a Definitive Search and Advertising Services and Sales Agreement and License Agreement
On October 28, 2009, Yahoo! Inc., a Delaware corporation (“Yahoo!”), and Microsoft Corporation, a Washington corporation (“Microsoft”), mutually agreed to extend the period to negotiate and execute a Search and Advertising Services and Sales Agreement and a License Agreement (the “Definitive Agreements”) reflecting and supplementing the provisions of such agreements as set forth in annexes to their binding letter agreement dated July 29, 2009 (the “Letter Agreement”). The Letter Agreement specified that the parties would execute Definitive Agreements by October 27, 2009, but given the complex nature of the transaction, there remain some details to be finalized. The parties are working diligently on finalizing the agreements, have made good progress to date, and have agreed to execute the agreements as expeditiously as possible. The Letter Agreement was the subject of a Current Report on Form 8-K filed by Yahoo! on August 4, 2009.
You can read the whole thing yourself at the SEC’s website.
…”Given the complex nature of the transaction, there remain some details to finalize”
That’s the gist of the whole thing. I never understood what was so complex about the deal when it was fist announced. In fact, it seemed ridiculously simple at the time…so much so that my first instinct was the Microsoft was really screwing Yahoo over. Maybe Yahoo realized this and are trying to get a better deal? Or maybe they want to pull out of the deal completely? Or maybe it really is just a delay based on the complex nature of the deal.
I guess we’ll just have to wait and see. We’ll be watching with great anticipation!
What do you think of this whole deal? Comment below!
October 30, 2009
SEO News