Yahoo and Google have once again struck a deal that will see the two tech giants working together after years of negotiation, ever since that 200 anti-trust lawsuit happened. Yahoo announced earlier today that Google will provide search results and ads for Yahoo.
The deal will see Yahoo benefiting from Google for a three-year period. Yahoo CEO Marissa Mayer believes this will “bolster Yahoo’s search capabilities.”
The deal is also projected to increase the sales of Yahoo through ad revenues. As per the terms, Google will also be paying Yahoo a cut from the ads gross revenue. Yahoo will in turn pay Google for providing algorithmic and image search results.
However, the terms of the agreement are subject to review by US Department of Justice. Until then the deal’s fate lies in oblivion. A similar deal was struck between the two in 2008, which failed to get approved from the antitrust regulators.
Google and Yahoo’s partnership will not affect the latter’s agreement with Microsoft. Yahoo’s 51% search results are currently served by Bing. Yahoo is free to choose if it wants to use its own tech or get a help of another partner to fill-up the rest 49%.
The deal gives Google the rights to display ads on Yahoo and Yahoo affiliate sites. The percentage cut from the ads displayed will also depend on the type of device: desktop or mobile, and the geographic location of the target audience.
Mayer also revealed that Yahoo’s Gemini ad platform will be oriented towards Yahoo’s mobile traffic. She added that the company aims to increase its foothold in domain of search engines. As of now Yahoo is the world’s third largest search engine, holding its position partly due to its partnerships with Mozilla and Oracle, which use Yahoo as their default search engine.
Yahoo has also made public its intentions to be the default search engine on Apple’s Safari browser.
Google’s offerings on desktops and smartphones will complement the search services provided by Microsoft Corp., which remains a strong partner, as well as Yahoo’s own search technologies and ad products.
the company said.