Yahoo! Inc., which is building a regional data center in Lockport, has formed an Internet search partnership with Microsoft Corp. that Yahoo says will lift its annual operating income by about $500 million.

In the long-awaited 10-year deal announced on Wednesday, Microsoft will power Yahoo’s search tool while Yahoo will become the exclusive sales force for both firms’ premium search advertisers.

Under the agreement, Microsoft will license Yahoo’s core search technologies and Microsoft’s Bing will become the exclusive algorithmic search and paid search platform for Yahoo sites.

In addition to increasing its annual operating income, Yahoo said the deal will provide it with $200 million in capital expenditure savings and an annual operating cash flow benefit of $275 million.

In June, Yahoo announced a decision to locate its Northeast data center on a 30-acre site in the Lockport Industrial Park near the Delphi Thermal Systems complex.

The new operation, which includes a 190,000-square-foot structure, could initially employ 125 people, the company said.

Source:

• Biz Journals