400 Employees of Yahoo will be recruited by Microsoft

August 6, 2009

When the United States government to approve the cooperative agreement between Yahoo and Microsoft in the field of Internet search, Microsoft will be recruited, at least 400 employees of Yahoo.

It was revealed from the Regulatory filing in the elaboration from the results both parties consent, which is quoted from the AP. Yahoo, which headquarters in Sunnyvale California, has also said that some of the employees will offer to work in companies that are partners in Redmond Washington.

However, Yahoo does not provide specific numbers, how many employees will be transferred to Microsoft. Now, Yahoo has around 93 thousand employees. When cooperation is approved, the transfer of employees will be conducted starting early next year.

Employees who transferred will worked on the project cooperation in the field of search engine and search advertising. In addition, Yahoo will receive U.S. $ 150 million, to anticipate the costs that are not estimated, during the transition in progress.

U.S. $ 50 million, will be paid by Microsoft every year, during the first three years of the contract period of 10 years. With the transfer of employees, Yahoo could save about 3 percent of the cost of employee users.

Although the Microsoft and Yahoo has revealed its plan of cooperation, Yahoo shares continue to slump. Since the announcement of cooperation, Yahoo stock has dropped to 15 percent. This is due, at least because of the payment in advance by Microsoft, for cooperation. Initially, the analyst estimates the payments Microsoft is a U.S. $ 1 – 2 billion.

In the agreement, Yahoo should give up control to the search engine and Microsoft will get 88 percent of all profits from the sale of search ads in the site during the first five-year contract period. In addition, Yahoo also has the right to sell ads on some Microsoft site.

The main reason for Yahoo to agree to that cooperation, because Yahoo requires funds. However, Yahoo can also adopt the online map services Microsoft property, to replace the Yahoo map of the property online.

Yahoo’s search engine is the second largest after Google. This is used by Microsoft to pursue of left behind of Microsoft it’s self. According to the calculation of Microsoft, Google gain about 7 cents from each of the search on the internet. While Yahoo gets 4.3 cents per search, and Microsoft gets only 3.9 cents.


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