Yahoo Stabs Microsoft in the Back, Signs Search Deal with Google

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http://news.softpedia.com/news/yahoo-stabs-microsoft-in-the-back-signs-search-deal-with-google-494976.shtml

Yahoo’s getting ready to terminate deal with Microsoft
Microsoft and Yahoo signed their first search collaboration in 2009, but after Marissa Mayer took over the leading spot at the latter in 2012, the company has been continuously looking into ways not necessarily to terminate the agreement but to loosen its ties with the Redmond-based software firm.

This finally happened in April this year, when Yahoo and Microsoft reached a new agreement, allowing the former not only to explore its search business options but also to end the deal with just a written notice of termination after October 21.

And it appears that Yahoo’s very close to doing that, as the company has recently signed a search deal with Google that will expire on December 31, 2018.

Microsoft: Yahoo still our partner
A Yahoo 8-K filing reveals that Google will be the provider of Yahoo’s search ads with AdSense, while also offering web search and image search services through its engine on both desktop and mobile platforms.

“Yahoo may use Google's services on Yahoo's owned and operated properties (‘Yahoo Properties’) and on certain syndication partner properties (‘Affiliate Sites’) in the United States (U.S.), Canada, Hong Kong, Taiwan, Singapore, Thailand, Vietnam, Philippines, Indonesia, Malaysia, India, Middle East, Africa, Mexico, Argentina, Brazil, Colombia, Chile, Venezuela, Peru, Australia and New Zealand,” the filling reads.

As far as Microsoft is concerned, its friendship with Yahoo still exists, and the company has refused to comment on reports pointing to the new search deal with Google.

“We remain committed to the Yahoo syndication partnership and will continue to serve the majority of Yahoo traffic as outlined in our contract extension. Yahoo is a valued partner and we look forward to continuing to serve our advertising customers through the Bing Ads marketplace,” a company spokesperson has been quoted as saying.

While the end of the deal is not yet official, it would obviously be an important hit for Microsoft, which is still pouring millions of dollars to make Bing a better rival to Google. At this point, Bing has a search engine share of about 20 percent, and although the difference against Google is still significant, breaking up with Yahoo is expected to have an impact on its performance.