Yahoo China Missing From Microsoft Search Deal

From PC World: The search tie-up between Yahoo and Microsoft does not affect Yahoo's China properties, which are controlled by e-commerce giant Alibaba Group, the group said Thursday.

It was not immediately clear if Microsoft would seek a separate deal with Alibaba regarding Yahoo's China search engine, but the statement announcing the partnership between the two U.S. companies billed it as "global."

Microsoft and Yahoo this week announced a long-anticipated deal on Internet search. The algorithm used by Microsoft's Bing search engine is set to power Yahoo searches as well for the next ten years, while Yahoo will sell premium search advertising services for both companies, they said. In exchange for its added traffic, Microsoft will pay Yahoo an 88 percent cut of the search revenue generated on sites owned and operated by Yahoo.

But the deal does not affect Yahoo's China properties, an Alibaba spokesman said. Yahoo China is "managed independently of whatever Yahoo U.S. chooses to do," he added via text message.

Yahoo obtained a 40 percent stake in Alibaba Group in 2005. As part of that deal, Yahoo gave control of its China operations to Alibaba.

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