Google Comes to Yahoo’s Rescue with its Search Engine Services
Google came in over a decade ago and it has played a huge role in downing Yahoo and a vast range of its services, the most common ones being the latter’s web search and email services.
Yahoo has been striving hard to try and revive its dwindling sales and performance in the tech industry, but it seems the company will look for a helping hand to aid in its recovery process. The surprising thing here is that the company that is coming to Yahoo’s aid is the same company that contributed largely to its reduced popularity.
After rolling out its earnings for this third quarter, Yahoo announced that it will be teaming up with Google with respect to search matters. The deal started earlier this month and it is expected to go on until 2018. During this period, Google will be responsible for providing Yahoo with search ads, image search as well as algorithmic search services both on the desktop and mobile versions.
As detailed out in the regulatory filing, the search queries that Google will be handling will all be determined by Yahoo. In addition, the company will not be compelled to meet any minimum requirements for these search queries.
Squeezing more money
The idea behind Yahoo’s merger with Google is basically meant to add more to its revenues with respect to its search engine services. This is true because the company is well aware of its technological shortfalls that hinder it from managing the search queries better as well as adequately serving ads. Google is the most used search engine giant and by forming this partnership, Yahoo hopes that it will get a portion of the revenue that Google makes from its ads and search engine services. When compared to Google’s 64% market share, Yahoo’s 12.7% of all desktop searches in August of this year in the U.S. alone is still found wanting.
Yahoo has a rather similar deal with Microsoft, but the new deal will not have any form of impact on this existing agreement, the company said in a statement. Yahoo struck a 10-year deal with Microsoft where the software maker was to help power Yahoo’s search engine services in exchange for a small cut in the revenue generated from the same. These two companies were in need of each other, with Microsoft looking for a way to expand its user base using Yahoo’s great reach while the latter was in need of the former’s technology.
The deal, which was struck in 2010, was revised in April this year to allow termination of the agreement just in case need arises. In the event of doing so, each party will be able to walk away from the deal, but only after issuing a four months’ notice.