31% of Yahoo’s revenue comes from Microsoft paying it to use Bing

Bing may not be making any money for Microsoft but it seems to be doing wonders for Yahoo.Reports say that Microsoft’s payouts to Yahoo in exchange for using Bing as its search engine accounted for 31% of its revenue last quarter, a surprisingly high number given that Yahoo before would only say that the Bing payouts accounted for more than 10% of its revenue.

Yahoo! Inc. (YHOO) agreed to disclose more details on its revenue tied to search and display advertising after the U.S. Securities and Exchange Commission sent letters to the company asking for clarification. The company outlined the portion of revenue it gets from a search agreement with Microsoft Corp. (MSFT), following inquires stretching back several months, according to new regulatory filings that were made public yesterday. Yahoo, which had previously said the deal comprised more than 10 percent of sales, said the pact generated 31 percent of revenue in the latest quarter.

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