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Yahoo! wants out of Microsoft search deal - report

2013-05-08 08:13:00| Telecompaper Headlines

(Telecompaper) Yahoo! has been quietly trying to find a way out of its web-search partnership with Microsoft, a person familiar with the situation told the Wall Street Journal. Yahoo! CEO Marissa Mayer has been seeking to end the contract since joining Yahoo from Google last year, the paper's source said, adding that Microsoft has indicated it wasn't interested in doing so. The company disclosed in a recent regulatory filing that Microsoft had extended a revenue guarantee associated with the partnership, the second such extension since the 10-year pact took effect in 2010. 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 latest extension affects only the US. Meanwhile, Google has indicated to Yahoo over the past year that it is willing to enter into a potentially more lucrative partnership to provide web-search and search-advertising technology to Yahoo, according to people familiar with the matter. Google and Yahoo in 2008 tried to reach a similar pact but faced resistance from regulators. Yahoo is unlikely to get out of its contract with Microsoft until at least mid-2015, the midway point of the 10-year agreement, when either party can potentially opt out, said a person familiar with the contract.

Tags: search report yahoo deal

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