Yahoo-MSFT Deal: Details From SEC Filing: Calibrated Against Google’s Search Revenues & Marketshare

Yahoo (NSDQ: YHOO) just filed with SEC with some more details of its search deal with Microsoft (NSDQ: MSFT). Some standouts:

— The deal details have to be hashed out by by October 27, 2009
— The deal can be terminated if not implemented by July 29, 2010
— Microsoft will hire at least 400 Yahoo employees
— No termination fee, apparently
— Microsoft will pay Yahoo $50 million annually during the first three years, and Yahoo “may use these payments to partially cover transition and implementation costs not otherwise covered under the Search Agreement,” the filing says. So costs associated with transition.
— After five years, Microsoft can choose to take over search advertising sales for premium advertisers. If it does so, Yahoo’s share of revenue will go up to 93 percent. However, if Yahoo chooses to continue selling search ads to premium advertisers over Microsoft’s objection, its share of revenue will fall to 83 percent.
— If Microsoft does not exercise its option to take over premium search advertising sales, Yahoo’s share of search revenue will increase to 90 percent, after five years.
— Yahoo has the option to use Microsoft’s mapping and mobile search services (It has already said it will use Bing’s mobile search)

Very interesting: There are deal termination provisions which are calibrated against Google (NSDQ: GOOG). Yahoo can terminate if the trailing 12-month average of the RPS (revenue per search query) in the U.S. of Yahoo and Microsoft