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Yahoo attempts to exit Microsoft search deal for Google partnership

08 May 2013
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Yahoo has been trying to exit its 10-year search deal with Microsoft in order to join forces with Google, according to reports.

Yahoo signed up to the Microsoft search agreement in July 2009 with expectations that the partnership may allow both firms to rival Google in the search market. Under the terms of the deal Microsoft Bing powers Yahoo search, while Yahoo uses its solid relationship with advertisers to be the salesforce for both companies.

However a Bloomberg report said Yahoo chief executive Marissa Mayer has been trying to pull out of the agreement for almost a year, without success.

According to the report, Mayer has already met with her previous employer Google and agreed to enter an alternative search partnership if the Microsoft agreement can be concluded. The deal terms between Microsoft and Yahoo mean that the partnership can only be called off if either Microsoft closes Bing, or if Yahoo's revenue per search falls below 40 percent of Google's.

Mayer's predecessor Carol Bartz was responsible for forming the deal, which has not met expectations. For instance Yahoo has blamed prior drops in profits and economic woes on technical issues arising from the Microsoft search partnership.

Yahoo has declined to comment on this story, and the firm has also told V3 that it would not be able to discuss reports that it is in early stage talks to acquire Hulu, a video site.

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Rosalie Marshall
About

Rosalie Marshall is the special projects editor and chief reporter at V3. Previously she was a reporter for IT Week and channel editor for online television site LocalGov.tv. Rosalie covers government IT, business applications, IT skills, open source technology and social networks.


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