Yahoo has revealed that it has entered into a new search deal with the search giant Google. The agreement between the two biggest tech companies has become effective from October 1st and shall remain in force till close of 2018.
Under the terms of the agreement, Google will be powering Yahoo search with its image search service, algorithmic search and search ads for both desktop and mobile search on Yahoo. According to filings with the regulatory authorities, Yahoo reserves the right to select the queries it will send to Google and no minimum number of queries have been agreed between the two companies. Yahoo statement in its earnings release reads:
“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.”
Yahoo is still a popular search destination with 12.7 percent market share but lacks the technology to extract the maximum out of this traffic. So it has entered into partnership with the company that knows this best and that has 64 percent desktop search share.
Yahoo has said that its existing deal with Microsoft is not threatened by this new agreement with Google. Yahoo has already a running deal with Microsoft since 2010 for a ten year period.