Reports Yahoo! (YHOO)/Mircosoft (MSFT) Deal Very Close... Again

July 17, 2009 9:19 AM EDT
According to Kara Swisher at AllThingsDigital, a Yahoo (Nasdaq: YHOO) search ad deal with Microsoft (Nasdaq: MSFT) is "Down to the Short Strokes."

According to the report, top Microsoft executives have flown down to Silicon Valley to iron out the remaining issues. Microsoft's CEO Steve Ballmer is deeply involved in the talks, although he is not with the group.

If all goes well, a deal could be announced within the next week. But that said, both sides cautioned that the deal could fall apart again.

While terms vary from source to source, they all involve Microsoft paying Yahoo! several billion upfront to take over the search advertising business and guarantee certain payments back to Yahoo. There is also a display advertising element.

Microsoft's successful initial launch of Bing.com may give it some leverage.

Link to AllThingsDigital Article

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