Yahoo Bids Goodbye To Microsoft
May 22, 2013
When Marissa Mayer took charge of Yahoo, she flipped the failing company upside down with strategic changes and she is about to make another one, says CNet in the article, “Yahoo Reportedly Looking To Dump Microsoft Search Pact.” Mayer has been unhappy with Yahoo’s partnership with Microsoft and has been searching for a way to end the arrangement.
Both companies made the deal in good faith:
“The two companies entered into a 10-year search partnership in 2010 in which Microsoft would power Yahoo search and Yahoo would become the sales force for Microsoft’s premium properties. However, the relationship hasn’t yielded the revenue-per-search guaranteed by the partnership, prompting Microsoft to extend the RPS guarantee for another year, Yahoo disclosed in a regulatory filing Tuesday.”
Microsoft failed to hit the RPS targets and Microsoft keeps seeking extensions in hopes to generate some profits. Mayer wants to grow Yahoo, she does not want to remain stagnant which is what the deal is bringing. Yahoo still considers Microsoft an important partner, but back in 2008 Google courted Yahoo with an ad-search deal and they may come back. Yahoo will probably find a way out of the deal and if the purpose is to make money, which Google is good at, Yahoo just might join the Google family. Is it time to drink the Kool-Aid?
Whitney Grace, May 22, 2013
Sponsored by ArnoldIT.com, developer of Beyond Search
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