Yahoo’s Overture Extends Microsoft Deal
SAN FRANCISCO (AP) — Overture Services, a commercial search engine recently acquired by Yahoo! Inc., said Friday its advertising links will continue to appear on Microsoft Corp. (MSFT)’s MSN Web site through June 2005 as part of a contract extension.
MSN’s contract with Overture had been set to expire at the end of next year. Some industry observers thought Microsoft might end the partnership even earlier because the service is now owned by one of its biggest rivals on the Web, Sunnyvale-based Yahoo.
The alliance generates revenue for Yahoo by providing a large audience for the advertising links drawn from Overture’s search engine.
Yahoo collects a commission whenever a visitor conducts a search on MSN’s site and clicks on one of Overture’s commercial links, usually listed on the right-hand side of the page under “sponsored results.” MSN gets a commission too.
Referrals from MSN and Yahoo sites account for nearly two-thirds of Overture’s revenue. Yahoo paid $1.8 billion to buy Pasadena-based Overture in July. The deal closed Oct. 7.
Microsoft has been trying to develop more of its own search technology so it won’t have to license services from other companies. The effort contributed to Microsoft’s recent decision to end a search services contract with San Francisco-based LookSmart. Since Microsoft announced the decision earlier this month, LookSmart’s stock has lost more than half its value.
Yahoo’s shares rose up 3 cents to close at $42.24 on the Nasdaq Stock Market, where Microsoft’s shares declined 30 cents to close at $28.93.
—–
On The Net:
More science, space, and technology from RedNova
Copyright © 2003 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.