As you may have heard, Yahoo has extended their search partnership with Microsoft in order for them to be guaranteed search revenues throughout the next year or so.
Microsoft promises Yahoo a certain RPS, revenue per search, amount in this agreement - something Microsoft has not been able to reach or go beyond. So Yahoo seemed to be in a place where if they left Microsoft, the RPS would be no where near what they would like, without the guarantee Microsoft is giving them.
In exchange, Yahoo lets Microsoft power their organic and paid search results.
Danny Sullivan wrote a nice post named Even If Yahoo Wants To Leave Microsoft, Here’s Why It Can’t. Very interesting...
Whereas Bloomberg reports Yahoo’s Mayer Plans Search Revamp to Narrow Google Lead. Yea, I am sure Marissa is itching to jump start search at Yahoo. It is too bad her predecessors ruined those hopes.
Forum discussion at WebmasterWorld.