CNET: Overture Paid Search Pays off for Yahoo

In a measure of the alliance's weight on Yahoo's earnings, the portal reported income of about $54 million from its partnership with Overture. That's 19 percent of the total revenue logged for the three months ended March 31 and more than double the roughly $23 million, or 12 percent of total revenue reported in the same period of 2002. […]

Industry analysts have speculated that Yahoo will eventually build its own paid search business and slowly edge out Overture, which has a contract with the portal until April 2005 with an option to extend the deal to 2011. Others have speculated that Yahoo might purchase Overture with its surplus cash of $750 million, a short-term interest-free loan it secured earlier this year.

Related Posts: