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Report: Yahoo Struggling To Escape Search Partnership With Microsoft

 4:19 pm on May 8, 2013 (gmt 0)

There's always a way out, but it's likely to cost a lot of money.

Yahoo Inc. has been quietly trying to find a way out of its struggling Web-search partnership with Microsoft Corp., a person familiar the situation said, but has so far failed in that effort.

The Silicon Valley Internet company disclosed in a regulatory filing Tuesday that Microsoft had extended a revenue guarantee associated with the partnership, the second such extension since the 10-year pact took effect in 2010.Report: Yahoo Struggling To Escape Search Partnership With Microsoft [online.wsj.com]
Chief Executive Marissa Mayer has been seeking to end the contract with Microsoft since joining Yahoo from Web-search giant Google Inc. last year, this person said, adding that Microsoft has indicated it wasn't interested in doing so.

Yahoo's revenue per search has been worse under the Microsoft deal than when it operated its own Web-search technology and advertising system. Unlike the prior revenue guarantees from Microsoft, the extension announced Tuesday affects only the U.S.



 8:32 pm on May 8, 2013 (gmt 0)

evidently, yahoo seeking its miserable future as simple adsense outlet, like myspace back then with the google deal. may be a similar chunk of ad space inventory that go with google ads.


 9:16 pm on May 8, 2013 (gmt 0)

It would be interesting if Mayer was trying to circumvent the US Justice Department and bring Yahoo into the Google fold. Then again I wouldn’t put anything past a Google employee ex or not.


 10:10 pm on May 8, 2013 (gmt 0)

Otherwise known as the "Elop" strategy..


 10:38 pm on May 8, 2013 (gmt 0)

Yahoo getting back into search would be nice as I preferred a 3-legged race than the current 2 player game. If you don't get traffic from Bing's search or Google search you're pretty much toast.

Maybe they have some hungry company, a Yandex or Baidu card up their sleeve waiting to be played, to get the same search services for a heck of a lot less and be more profitable.

Who knows.


 10:57 pm on May 8, 2013 (gmt 0)

If you don't get traffic from Bing's search or Google search you're pretty much toast.

Outside of the USA..no-one gives a flying F about Bing traffic as G have over 90% market share..and MS don't have an adsense equivalent outside of the USA ( and never did ..Y only have a "grandfathered version of the old Overture Feeds which reverted to MS feed ads..and are run ..on the commercial side..( not the tech side ) ..by "kiduldt" clowns.. at Y )..so why would any webmaster promote Y ?..

I do very very very well on Bing and Bing Via Y search..as regards SERPs positions..#1 to #3 for everything..

But I could block their bots tomorrow..and I wouldn't notice a traffic drop of more than 3% from USA based referrals and not more than 1% from "rest of world"..

And as regards "engagement with the webmaster community"..remember ..Google was sent viral by our recommendations..

When G began? Matt and other G reps were posting and engaging here daily..

MS and Y..the MS rep posts to say "going on vacation"..but posts so infrequently that we'd never notice..

And the Y reps appear to have been fired or to have developed an allergy to WebmasterWorld..or the reps from both companies don't give a #*$! about WebmasterWorld..

Which is kind of stupid because even Pinterest send in their PR dept to sign up here and spread FUD and shill..

G no longer need to bother..doing other than reading here from time to time ..


 11:28 pm on May 8, 2013 (gmt 0)

When G began? Matt and other G reps were posting and engaging here daily..

They finally wised up and took the conversation to their turf which is what most technology companies are doing these days because you can't control the content when it's on WebmasterWorld.

That's why when you come across sites like WebmasterWorld that still have a following you know you've got the cream of the crop because the sheep are all bleating in the content controlled pastures of the vendor but we're drifting off topic.

While Yahoo now struggles to get away from MS, I always wonder what would've happen had they bought Google if/when they had a chance when they used Google initially for results and was forsaking Inktomi?

Would Google have ended up as bad as Inktomi did under the Yahoo leadership?

Lot's of interesting alternative history possibility to contemplate because for better or worse AdSense, Android, self-driving cars and Google's fantastic maps probably wouldn't exist. I often think of how my life would be different if I didn't have all these things and Yahoo had a chance to impact it all, for better or worse. Obviously Google bought Android, YouTube, etc. but they had the money to keep pumping into those technologies and the muscle to keep pushing them in the market, and legal team, while they might've died if left to their own devices. I think YouTube would've eventually collapsed under pressure from media companies just like Napster, it was headed that way. Android didn't have any muscle in the cell phone market, just another wannabe, etc. Lots of things might be different if Yahoo had managed to acquire them, such as Yahoo not being in the toilet.

I think Yahoo would be best snapped up by MS as MS wants a portal and Yahoo needs a search and it's far harder to build something the size of Yahoo than it is to build a search engine IMO. But the problem is the longer MS keeps hammering away on their portal the need for Yahoo is diminishing and in the end I think MS will be the one wanting out of the Yahoo/Bing search deal when they see that letting Yahoo die is the best thing possible instead of helping it continue to hobble along.


 12:13 am on May 9, 2013 (gmt 0)

Yahoo getting back into search would be nice

If Yahoo had been serious about dominance they wouldn’t have let their acquisitions of “Alta Vista” or “All the Web” drop off the map. Think of the possibilities. For now Mayer is probably so engrossed in telling those Yahoos, “Now this is the way we did things at Google” nothing else crosses her mind. Meanwhile back at the Plex they’re bragging about their “ace in the hole” at Yahoo. I think she’s looking for a golden parachute.


 12:17 am on May 9, 2013 (gmt 0)

I seem to remember she already got the Golden ( $36 million dollar ? ) "welcome mat" from Y..maybe there is also a "brung* them in" "bounty deal" set up with G before she left..

if you are prepared to accept "gotten" as a word, don't get picky about "brung"


 7:26 am on May 9, 2013 (gmt 0)

Why should they escape, maybe they should first cut $36 million dollar bills? Children are starving and they feed ceos with millions and millions, WTH? This is how the world is run, by corrupt greedy people, this will never change, the root of evil is money and always will be.


 12:11 pm on May 9, 2013 (gmt 0)

This is how the world is run, by corrupt greedy people, this will never change

History says that someday there will be a revolution and that will end. Of course, it will also go back to the same power structure because humans are greedy by nature.


 12:32 pm on May 9, 2013 (gmt 0)

A Yahoo deal with Google will never get past the regulator..


 12:43 pm on May 9, 2013 (gmt 0)

Why not, Y ran G search before with no objections..adding adwords into the results and adsense on landing pages would be a minor step..


 2:32 pm on May 9, 2013 (gmt 0)

A Yahoo deal with Google will never get past the regulator..

You have a lot of faith in the current state of the US gov't. The DOJ already gave G a pass, the big banks, etc... More money for them to let it go through.


 12:22 pm on May 13, 2013 (gmt 0)

Inferring other instances now adding this one.....
Mayer doesn't seem to have robust strategy and 'cohesive minds' to resolve the Yahoo worries. Bleak future ahead for Yahoo.
-lalit kumar


 2:31 am on May 14, 2013 (gmt 0)

I got an email from Chitika the other day, announcing that they struck a deal with Yahoo to cooperate in delivering ads.


 11:28 am on May 15, 2013 (gmt 0)

No one has anything good to say about the deal, it has cost publishers millions, advertisers have had to restructure campaigns and performance is underwhelming.

Bing like to interfere and stick their beaks where its not wanted, it was supposed to be a partnership, yet Yahoo! is the one bending over the desk.

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