Rumor: Yahoo to dump Microsoft as its search partner?

In December 2009, Microsoft and Yahoo announced an new long term deal that would have Microsoft's Bing search service as the core technology behind Yahoo's search engine; the deal was supposed to last 10 years. Now a new report claims that Yahoo is looking to make a new deal and perhaps replace Microsoft entirely.

AllThingsD.com reports, via unnamed sources, that Yahoo is holding a major "offsite" meeting of its major executives today. The subject of discussion at this meeting is nothing less than the future of the company, with subjects such as mass layoffs of workers, selling off businesses and more as part of the proceedings.

The report also claims that Yahoo executives will also be discussing how it could approach Microsoft in talks to change its current search and advertising partnership deal. Even more surprisingly is word that Yahoo could try to talk with Google about it taking over Yahoo's search business.

All of these ideas are floating about thanks largely to Yahoo's new CEO Scott Thompson, who came on board in January. It seems that Thompson is wasting no time in trying to jump start the company by making major changes and that may include its relationship with Microsoft.

The Bing search service has made some inroads in taking on Google's business. In January, it was revealed that Bing had become the number two search provider in the US, finally getting ahead of Yahoo. If one combines Yahoo's search marketplace share, which is powered by Bing, with Bing's own stand alone service, Microsoft now controls 29.1 percent of US search results.

If Yahoo were to dump Bing for Google, it would certainly put a big dent in Microsoft's efforts to take away some of Google's market share.

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23 Comments

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Use to have yahoo as my homepage until Google came out the closet with Gmail and never looked back since. Google just works.

Switching to Google would be nice. But in all honesty, thus is probably just a ploy to try to extract more money out of Microsoft. Given just how hell-bent Microsoft is on destroying Google, Yahoo's ploy will probably work.

MS Lose32 said,
Switching to Google would be nice. But in all honesty, thus is probably just a ploy to try to extract more money out of Microsoft. Given just how hell-bent Microsoft is on destroying Google, Yahoo's ploy will probably work.

Microsoft is spending a lot of money because of how serious they are on getting Bing and other products and services to be as successful or successful enough like competing companies. I have to say Bing is doing pretty good with market share (in the US especially, anyway). Bing is always improving but on relevancy and indexing rate, Google is far better - but Bing is pretty good so far.

bastones said,

Bing is always improving but on relevancy and indexing rate, Google is far better - but Bing is pretty good so far.
I have to agree, Bing is FAR better than Live Search ever was. But I still prefer Google.

The best news I heard in ages, I do hope YAHOO goes the path of Google and be friends it users : ) - oh that would be living a fantasy....

ogamawab said,
The best news I heard in ages, I do hope YAHOO goes the path of Google and be friends it users : ) - oh that would be living a fantasy....

true... Good for Yahoo... ditching MS is the best thing for Yahoo.

dotf said,
Yahoo was over for me when they purchased and destroyed the best mp3 manager out there.

If I recall, was it musicmatch?

I really doubt that Google would be allowed to power Yahoo, due to it's monopoly in the search market. I'm pretty sure there will be antitrust issues there.

sviola said,
I really doubt that Google would be allowed to power Yahoo, due to it's monopoly in the search market. I'm pretty sure there will be antitrust issues there.

Rumor will be rumor, but I agree with your statement.

RommelS said,

Rumor will be rumor, but I agree with your statement.

Have to agree, this is a rumour and people are posting like they think it's true. Unless they confirm this, I'd recommend you treat it with the thought that it is a rumour and may be completely false as a result.

Although I do think if, ever, Yahoo! decided to move to Google powering their search business, it'd be interesting to see what the response is from US antitrust regulators and perhaps European competition regulators.

Phouchg said,
How are they still holding themselves above the water?

Advertising. Other the Gmail, Yahoo is one of the most common email addresses I see from casual users.

Since Yahoo isn't a search engine any more hiring outside sources to do it. They are getting rid of other businesses by selling or shutting them down. What is Yahoo! exactly these days?

Should have taken the overvalued deal that MS gave you, Yahoo. But tsk tsk you were too greedy and wanted more even though MS was offering a lot more money than your company was worth.

Also didn't Yahoo initially use Google Search? And then they sold out to MS, and now they want to go back to Google?

Because it's not like Microsoft hasn't shown they'll fall asleep at the wheel when they've come to dominate any given market. *cough* IE6 *cough*

What does that have to do with Yahoo? Pretty sure they don't care if MS becomes a monopoly and stops all development on everything as long as they earn money from it.

If they aren't earning money (or enough money as they want) then they'll bitch about it or switch to another company.

Not saying monopolies are good or anything just pointing out that yahoo should have taken the deal because since then their stock price has halved and they've been hemorrhaging money. But they were too greedy and wanted even more money than they were being offered and now look at where they are.

Razorfolds said,
Should have taken the overvalued deal that MS gave you, Yahoo. But tsk tsk you were too greedy and wanted more even though MS was offering a lot more money than your company was worth.

Also didn't Yahoo initially use Google Search? And then they sold out to MS, and now they want to go back to Google?

Do remember this is a rumour. Yahoo! has not confirmed this, nor Google either. A rumour is a rumour and may be false as a result.

JAB Creations said,
Because it's not like Microsoft hasn't shown they'll fall asleep at the wheel when they've come to dominate any given market. *cough* IE6 *cough*
oh BS, they got slapped around the public and private sector like nothing else for that and they are still getting slapped today. IE6 is a pain in the ass to move away from when the business apps using it have long seen their developers move on.

They won't make that mistake again. Also, the competition from Google and Apple is more of a factor today than it ever has been. Again, I don't believe for a second they will fall asleep.

We have a better chance of seeing Apple becoming complacent and taking a nap than MS. The back hand that Corporations are dealing them on a daily basis serves as a reminder of their past mistakes.