Yahoo! Inc. (NASDAQ:YHOO) and Microsoft Corporation (NASDAQ:MSFT) have arrived at an agreement that will allow Yahoo to gain more flexibility to operate its search engine.
The new contract will give Yahoo more freedom to work with its other associates for its search engine. The company will also gain more control over its ad sales via the company’s own websites. The agreement did not result to any significant changes in the share ownerships of the two companies.
The relationship between the two companies goes back ten years ago when the two got into an agreement. The deal allowed Microsoft to bring Bing into its search options for desktop and PC browsers. Part of the agreement was to give Microsoft 12% of the total revenue gained from the advertising revenue.
Yahoo’s CEO Marissa Mayer said that Microsoft had previously experienced a bit of disappointment. She cited reasons that the company had been unable to optimize its Google search engine to commercialize its search engine.
Yahoo has experienced all time low revenues in recent times. Mayer has been trying to capitalize on Google ads in a bid to push up profit levels especially in the mobile industry. Reasons being, mobile users use surf more on their devices due to the mobility factor, plus the deal with Microsoft did not cover mobile devices.
In 2014, Yahoo won the bid to for the default search in Netscape Browser. Mayer plans to carry on the fight to win the default position on Apple Inc. (NASDAQ:AAPL) iPhone.
The new venture will allow the company more flexibility in a few income earning fields. It also gives both companies the right to use Google ads on their individual search engines without infringing on each other’s rights. The move will allow more advertisers to use both platforms without diminished chances from the option selected. It will also widen the search result criteria, giving users more refined results.
The two companies have made very minimal progress within the past few months. However, the future promises more progress as a result of the increased ease.