Sunnyvale (CA) – Yahoo revealed more details about its 10-year search deal with Microsoft that was announced last week. According to the agreement, at least 400 Yahoo employees will move to Microsoft’s payroll and Microsoft will pay Yahoo $150 million to cover technology transition costs.
According to an 8-K SEC filing that surfaced on Yahoo’s website late Tuesday, Microsoft has agreed to hire “no less” than 400 Yahoo employees as part of a search deal between the two companies, which enables Microsoft to become Yahoo exclusive search technology provider for the next ten years. Additionally, there will be an additional 150 Yahoo employees to be mutually agreed upon between Microsoft and Yahoo to assist with providing the “transition services”.
Microsoft will also assume other technology transition costs with a $50 million annual payment to Yahoo paid during the first three years. The agreement states that Yahoo “may use these payments to partially cover transition and implementation costs not otherwise covered under the search agreement.”