Yahoo Signs Search Partnership With Google

Yahoo revealed on Tuesday that it has partnered with search giant Google in an advertising agreement. The partnership is a 3-year, non-exclusive agreement that covers both mobile and desktop audiences all over the world.

This new partnership may provide a potential boost to Yahoo CEO Marissa Mayer’s efforts to turn the company around, following Yahoo’s profit miss for the third quarter. Their shares were down 1.6 percent in after-hours trading and overall reported revenue and profit fell short of marketing estimates.

Yahoo reported $1.23 billion in revenue — well below the average analyst estimate of $1.33 billion, polled by Thomson Reuters.

Mayer, who is on her fourth year as chief executive, said, “We are also experiencing continued revenue headwinds in our core (advertising) business, especially in the legacy portions,” and claimed the forecast was “not indicative of the performance we want.”

The deal with Google builds on an existing search partnership with Microsoft Corporation and their search engine, Bing. This previous partnership had Yahoo receiving a percentage of revenue from ads displayed on its sites.

In a press release, Yahoo stated, “In October, the company reached an agreement with Google that provides Yahoo with additional flexibility to choose among suppliers of search results and ads. Google’s offerings complement the search services provided by Microsoft, which remains a strong partner, as well as Yahoo’s own search technologies and ad products.”

Mayer did not elaborate on specifics regarding the mechanics of the deal and how Microsoft fits in the picture. However, she did talk about how Yahoo will be learning how to split up ads and results between its own, Google, Microsoft, and possible other players in the future.

She further stated that having three different search engines at its disposal “really improves search” as it provides the company with “greater stability as well as choice and a better user experience.”

Price and other specifics of the deal were not disclosed.

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Regina is a Fine Arts graduate who expresses herself through various mediums. She finds amusement in pop culture, enjoys video games, and watches way too many YouTube videos on a daily basis.