“It’s never just a game when you’re winning.”

George Carlin
US comedian and actor (1937 – 2008)

It has taken over a year and many failed proposals, but Yahoo! (YHOO) and Microsoft (MSFT) announced this morning that they have reached an agreement t0 create a more powerful search engine to compete against dominant Google (GOOG).

The basic concept of the deal is that Microsoft will be the force and power behind Yahoo!’s search engine, using their recently more powerful Bing search engine technology.  Yahoo! will sell the advertising from the new search engine and all search products.

The deal will not include each companies web sites, instant messaging, or email services.

The key terms of the agreement are as follows:

• The term of the agreement is 10 years;
• Microsoft will acquire an exclusive 10 year license to Yahoo!’s core search technologies, and Microsoft will have the ability to integrate Yahoo! search technologies into its existing web search platforms;
• Microsoft’s Bing will be the exclusive algorithmic search and paid search platform for Yahoo! sites. Yahoo! will continue to use its technology and data in other areas of its business such as enhancing display advertising technology.
• Yahoo! will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers. Self-serve advertising for both companies will be fulfilled by Microsoft’s AdCenter platform, and prices for all search ads will continue to be set by AdCenter’s automated auction process.
• Each company will maintain its own separate display advertising business and sales force.
• Yahoo! will innovate and “own” the user experience on Yahoo! properties, including the user experience for search, even though it will be powered by Microsoft technology.
• Microsoft will compensate Yahoo! through a revenue sharing agreement on traffic generated on Yahoo!’s network of both owned and operated (O&O) and affiliate sites.
• Microsoft will pay traffic acquisition costs (TAC) to Yahoo! at an initial rate of 88% of search revenue generated on Yahoo!’s O&O sites during the first 5 years of the agreement.
• Yahoo! will continue to syndicate its existing search affiliate partnerships.
• Microsoft will guarantee Yahoo!’s O&O revenue per search (RPS) in each country for the first 18 months following initial implementation in that country.
• At full implementation (expected to occur within 24 months following regulatory approval), Yahoo! estimates, based on current levels of revenue and current operating expenses, that this agreement will provide a benefit to annual GAAP operating income of approximately $500 million and capital expenditure savings of approximately $200 million. Yahoo! also estimates that this agreement will provide a benefit to annual operating cash flow of approximately $275 million.
• The agreement protects consumer privacy by limiting the data shared between the companies to the minimum necessary to operate and improve the combined search platform, and restricts the use of search data shared between the companies. The agreement maintains the industry-leading privacy practices that each company follows today.

Rumors of the deal had helped shares of Yahoo! rise over the past month from around $10/share up to $17.22 this morning before the markets opened.  Shares of Microsoft were at $23.47.

Yahoo! turned down an offer from Microsoft about a year ago to purchase the internet search pioneer for $33/share.  Naturally, the CEO and founder of the company Jerry Yang, has since been replaced by Carol Bartz.

Yang viewed the company as his baby and had a hard time letting it go for $33 a share, much to the outrage of shareholders.  The market crashed and shares dropped from $33 down to $8.94

Bartz has been determined to not sell the company but to find a way to reach a mutual benefiting deal with Microsoft.

The great reviews and early success of MS search engine Bing, combined with Yahoo!, might be just enough to not beat Google, but at least give them some decent competition for search traffic and dollars.

Actress Mischa Barton was seen spotted looking healthy and smiling when arriving at JFK Airport with her dog Ziggy. This is her first public appearance since she was placed on an involuntary psychiatric hold at the Cedars-Sinai Medical Center in Los Angeles earlier this month.

Mischa, who was released from the hospital this weekend, is in New York to start filming her new TV show, which was created by fellow actor Ashton Kutcher, titled “The Beautiful Life”. The 23 year-old actress will play a catwalk beauty addicted to pills – in this case, we hope art does not imitate life!

Mischa Barton Is Free Photos

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Former Philadelphia Eagles defensive coordinator Jim Johnson died on Tuesday (July 28) after a long battle with skin cancer. Jim, who was 68 years old, worked for as defensive coordinator for 10 years under coach Andy Reid before being replaced by Sean McDermott just last week.

“For ten years, Jim Johnson was an exceptional coach for the Philadelphia Eagles, but more importantly, he was an outstanding human being,” Eagles chairman Jeffrey Lurie said in a statement released by the team. “Jim epitomized the traits of what a great coach should be — a teacher, a leader and a winner. He positively touched the lives of so many people in and out of the Eagles organization. It was easy to feel close to him. We will miss him greatly.”

Jim is survived by his wife, Vicky, his two children, Scott and Michelle, and four grandchildren.

A 23 year-old pregnant woman named Darlene Haynes was brutally killed, her fetus removed and her body hidden in the closet at her rented apartment in Worcester, New England, Massachusetts.

The landlord found Darlene’s body when checking her apartment after complaints of a strong odor coming from it. The police is now investigating the strange murder of the 8 month pregnant woman, who was last seen alive on July 23 and whose dead body was found on Monday (July 27).

Her boyfriend Roberto C. Rodriguez was already interview by the Worcester police. Darlene had an active restraining order against Roberto for an alleged assault on June 24th, when she was 7 months pregnant.

Darlene’s baby could have survived but needs immediate medical attention. Authorities are asking for the public that has any information on the missing fetus/baby to contact the Worcester Police Department Detective Bureau at 508-799-8651.

Darlene Haynes Picture

It was was unanimous that Britney Spears was Kevin Federline’s meal ticket while they were married and it appears that Brit hasn’t cut off K-Fed’s Corlew dining plan just yet.

We have been watching the steady inflation of K-Fat over the past year, but new pictures reveal that he is one bad script away from playing a white Biggy Smalls on Cinemax.

Lest we forget this Fat Cat was once a backup dancer for Ms. Spears.  What do you think of his shocking new look?

Check out where Kevin ranked among The 10 Most Hated Celebrities of 2008.

More Kevin Federline Photos and News

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Actress Bryce Dallas Howard has been chosen to replace Rachelle Lefevre as Victoria in the popular teen book/movie series Twilight.

“Rachelle brought “Victoria” to great screen life and Bryce will bring a new dimension to the character. The franchise is lucky to have such a talented actress as Bryce coming in to fill the role.”

All involved are citing “scheduling conflicts” as the reason for Lefevre’s departure.

The 28-year old actress is the daughter of director/actor Ron Howard (Opie) and wife Cheryl.

It does seem extremely odd to replace an actress after the first two films.  “Scheduling conflicts” is almost always the most convenient excuse in Hollywood.

Howard will first appear in Eclipse which starts filming next month.

BUMPSHACK VERDICT: DOWNGRADE

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NBA fans have long known that talented, yet troubled, point guard Stephon Marbury has not always been the most sane baller during his career.

Over the weekend he did a live webcast feed for 24-hours straight on UStream and JustinTV. During the webcast Starbury did several eccentric things, one being dipping his finger in petroleum jelly, digging some out and eating it.

But perhaps the most head-scratching moment came during a five minute sequence when he was crying uncontrollably while listening to the Kirk Franklin song ‘Lean on Me’. A woman could be seen with her hand on his shoulder during part of the sob fest.

Perhaps it’s about time for Starbury to be mentally evaluated or either the NBA toughen up its drug testing policy.

Say it ain’t so Starbury, say it ain’t so!

Shaquille O’Neal hosted WWE’s Monday Night Raw in D.C. last night. The night concluded with Shaq in the ring going nose-to-nose with WWE superstar The Big Show. The Big Show got Shaq in a throat hold, before Shaq returned the favor. Then Shaq rammed The Big Show sending him out of the ring.

Shaq looked rather legit (in a non-legit sport) in the ring against The Big Show.

No Clue? CLICK TO FIND OUT

“You are young, my son, and, as the years go by, time will change and even reverse many of your present opinions. Refrain therefore awhile from setting yourself up as a judge of the highest matters.”

Plato, Dialogues, Theatetus
Greek author & philosopher in Athens (427 BC – 347 BC)

Tour de France winner Alberto Contador, of Spain, showed a rather ugly and arrogant side on Monday when he made comments about his dislike for American and 7-time Tour champion Lance Armstrong.

“My relationship with Lance is zero,” Contador said at a news conference, one day after winning his second Tour. “He is a great rider and has completed a great race, but it is another thing on a personal level, where I have never had great admiration for him and I never will.”

“On this Tour, the days in the hotel were harder than those on the road,” Contador said. “The situation was tense and delicate because the relationship between myself and Lance extended to the rest of the staff.”

Armstrong, who tried to be diplomatic and the wise veteran on the team, responded via his Twitter to his former cocky and victorous teammate.

“Seeing these comments from AC. If I were him I’d drop this drivel and start thanking his team.”

I believe Lance is right. Contador won the 2009 Tour de France because he is a great rider but having a great team is the only way any rider can win the grueling Tour.  Contador not only had the greatest Tour rider on his side, and at his back, in Armstrong, but he also had the best team manager Johan Bruyneel.

That will change next year when both riders leave Astana.  Armstrong and Bruyneel have already announced the formation of the American team, Team Radioshack.  Bruyneel will put together the best team possible for Sir Lance to mount a challenge to Contador to regain his place on the top of the podium.

Retired Belgium cycling great Axel Merckx had the following to say on his Twitter.

A champion is also measured on how much he respect his teammates and opponents. You can win a race on your own not a grand tour.

And Astana team director Johan Bruyneel went all Abe Lincoln on his Twitter feed:

Sometimes it is better to be silent and thought a fool, than to speak up and remove all doubt!

I think both men sum up the situation quite perfectly.