Microsoft and Yahoo have shared a search partnership ever since 2009, and in recent months, the agreement had expired, leaving many wondering about the next steps. On Thursday, Yahoo announced that the Microsoft partnership had been renewed, including new changes to make sure both companies stay strong.
The original goal of the search agreement was to give Yahoo’s search pages the power of Microsoft’s Bing search engine, thus supplementing Yahoo’s pages. As Yahoo has become more of a viable company in recent years, they have been looking to be on their own, but this new agreement should help out.
Major Changes To Search Deal
As shown in the press statement, Yahoo stated that the first update includes Yahoo’s increased flexibility to enhance the search experience on any platform. This is important, since the partnership is a non-exclusive for desktop and mobile. Desktop traffic covers most of the deal, but Yahoo can make mobile its own place.
Second, the update increases agility and sales focus. Microsoft will still be selling the ads on the Microsoft’s Bing Ads platform, but Yahoo will sell the ads on the Gemini platform. These two different platforms should compensate each other, and later this year will transition managed advertiser sales between the companies.
Why Did They Renew It?
Many had expected the two companies to renew the search deal, but many wonder why Yahoo still needs Bing, and why Bing needs Yahoo. Yahoo still doesn’t have the strongest search engine, and needs Bing to help it continue to grow. Microsoft on the other hand, gets almost free income and more exposure with Bing.
The partnership has been around since 2009 and it works. Both Marissa Meyer and Satya Nadella were at the front of renegotiating the new deal, and making sure both companies got this done. The revenue sharing agreement shares money between the companies, and gives users the best of search on both sites.
I’m glad this deal got done between Yahoo and Microsoft. It makes sense, and now both sides can move on.