Microsoft Earns Yahoo More Money Than Realized
December 26, 2013
Yahoo is pulling itself out of the red and is back on track to becoming a popular search engine and Web service. According to the ZDNet article, “Yahoo Says Microsoft Search Providing 31 Percent Of Revenues,” Microsoft is the reason why. Yahoo credits the 31% gain in its quarterly summary to its partnership with Microsoft. Yahoo claimed Microsoft only brought them 10% in sales from a previous statement. It has most definitely changed!
Yahoo and Microsoft signed a ten-year deal, where Microsoft would power Yahoo’s search and become the ad sales force for Microsoft’s premium properties.
The article states:
“Over the past year, Yahoo has been seeking a way to get out of the deal, claiming the company hasn’t found it financially lucrative. Yahoo CEO Marissa Meyer supposedly also has sought Microsoft’s pending change in CEO as a possible loophole for getting out of the deal earlier than expected. As SearchEngineLand noted, there is a clause which would allow Yahoo to exit early from the partnership in 2015 if the revenue-per-share threshold vs. the market leader (Google) doesn’t pass muster.”
Microsoft would like the deal to continue past the ten-year agreement, but both companies failed to provide comment in the article. In a prior article from ZDNet, Yahoo might be building a new search/personalization technology to relaunch itself as its own search provider. Yahoo may not want to break the deal now, especially if they are working on a secret project. They will need the money to fund research and development if they want to stand a chance against Microsoft.
Whitney Grace, December 26, 2013
Sponsored by ArnoldIT.com, developer of Augmentext
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