Back to the future: Yahoo returns to Google’s loving embrace with new search and ad deal
Yahoo, Inc. is returning home with an announcement Tuesday that they have signed a deal with Google to provide search results and advertising.
According to reports the deal will see Google will provide web search results, search ads and image search services for an unspecified number of Yahoo user queries, on both desktop and mobile platforms.
The partnership is non-exclusive meaning that Yahoo could continue to work with its previous partner Microsoft; the hookup with Microsoft was previously an exclusive one until it was renegotiated back in April this year.
According to the Securities and Exchange Commission (SEC) filing that confirmed the deal:
On October 19, 2015, Yahoo! Inc., a Delaware corporation (“Yahoo”), and Google Inc., a Delaware corporation (“Google”), entered into a Google Services Agreement (the “Services Agreement”). The Services Agreement is effective as of October 1, 2015 and expires on December 31, 2018. Pursuant to the Services Agreement, Google will provide Yahoo with search advertisements through Google’s AdSense for Search service (“AFS”), web algorithmic search services through Google’s Websearch Service, and image search services. The results provided by Google for these services will be available to Yahoo for display on both desktop and mobile platforms. Yahoo may use Google’s services on Yahoo’s owned and operated properties (“Yahoo Properties”) and on certain syndication partner properties (“Affiliate Sites”) in the United States (U.S.), Canada, Hong Kong, Taiwan, Singapore, Thailand, Vietnam, Philippines, Indonesia, Malaysia, India, Middle East, Africa, Mexico, Argentina, Brazil, Colombia, Chile, Venezuela, Peru, Australia and New Zealand.
Under the Services Agreement, Yahoo has discretion to select which search queries to send to Google and is not obligated to send any minimum number of search queries. The Services Agreement is non-exclusive and expressly permits Yahoo to use any other search advertising services, including its own service, the services of Microsoft Corporation or other third parties.
Yahoo and Google are also said to have agreed to certain provisions with the US Department of Justice (DOJ), but the companies have not disclosed details; both were rapped by the DOJ in 2008 follow a similar deal to the new one over antitrust concerns.
Money
Although not spelled out specifically by Yahoo, it’s clear the deal is all about increasing revenue at the old-school web portal, and Google’s provision of not only search results but advertising against those results will without doubt boost Yahoo’s bottom line.
For Microsoft, it’s a lost opportunity given that when their previous deal with Yahoo was announced back in 2011 we called it a backdoor takeover.
The deal has been in place since October 1st, although it’s not clear how many Google search results and ads Yahoo has utilized since that time.
Image credit: thomashawk/Flickr/CC by 2.0
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