Microsoft might pay off Yahoo early

SOFTWARE MONOCULTURE Microsoft has indicated that it might be prepared to write a $150 million cheque to Yahoo early if its proposed Internet search partnership is approved by regulators.

According to the AP, the new timetable is among the minor changes that Microsoft and Yahoo made to an agreement reached in July. The companies signed the final contract last week and it's clear that there was some minor tinkering with the fine print.

Yahoo may collect the entire $150 million by June 30 next year if it's working with Microsoft by then. Originally the Vole was going to pay Yahoo on an installment plan. Yahoo would get $50 million payments from Microsoft during the first three years of their 10-year contract.

Yahoo will also get to keep 88 percent of the revenue generated from the ads appearing alongside its search results, even though Microsoft will be supplying the technology.

The Vole has also given Yahoo the option to continue showing ads from other parties alongside search results in Hong Kong and Korea.

If Yahoo does this it will not get the same revenue guarantees from Microsoft as in other countries covered in their proposed partnership.

The companies are hoping antitrust regulators will approve their alliance early next year. µ