It may not be the end of the road for the 10 year long search partnership between Yahoo and Microsoft, yet. Both parties have decided that they are extending the deadline period by 30 days for re-negotiation purpose and extending the possibilities for higher income.
Back in 2010, Microsoft and Yahoo signed a 10 year long search partnership according to which Microsoft was supposed to power Yahoo search, and Yahoo to become the ad sales force for Microsoft’s premium properties. The purpose was to fight against Google, which has quite often proved its leadership in search technologies as well as income via ads. The deal includes various clauses that empowers each party to negotiate changes or to terminate the arrangement entirely after five years.
The deal also empowers Yahoo to terminate the deal if its 12-month average revenue-per-search (RPS) in the U.S. was less than a certain percentage of Google’s estimated RPS. Yahoo has been falling on that for quite some time and was always compensated by Microsoft.
Now that the 5 year interval has passed, neither of the party uttered a word regarding this partnership , which was expected to witness a termination or amendments to the policies and terms. The deadline period has now been extended by 30 days for re-negotiation purpose.
We value our partnership with Microsoft and continue discussions about plans for the future. We have nothing further to announce at this time.
Even after their collective efforts, Google pertains to be the world’s top search engine with roughly two-thirds of the U.S. search market. Moreover, Microsoft has been promoting its own search engine, Bing and has made numerous efforts to integrate Bing into more and more of its products and services.