Rumor: Yahoo to dump Microsoft for Facebook in new search deal

Microsoft's current arrangement with Yahoo that puts the Bing search engine inside Yahoo's website might be coming to an end, according to a new report. It claims that Yahoo is in discussions with Facebook that could lead to a search deal between the two companies.

The Telegraph reports, via unnamed sources, that Yahoo's new CEO Marissa Mayer has been talking privately with Facebook's chief operating office Sheryl Sandberg. The article says the talks could lead to Yahoo and Facebook teaming up to create a new search engine rival to Google and Microsoft's Bing.

Facebook founder and CEO Mark Zuckerberg has hinted strongly in recent months that the company is developing its own search technology. In a recent interview he is quoted as saying, "Facebook is pretty uniquely positioned to answer the questions people have. At some point we’ll do it. We have a team working on it."

Microsoft and Yahoo signed a 10 year deal in 2009 that put the Bing search engine as the basis for Yahoo's search results. The deal has allowed Bing to slowly take away some of Google's search market share. However, that was well before Mayer, who previously was a top executive at Google, came to Yahoo as its new CEO.

Source: The Telegraph
Search image via Shutterstock

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27 Comments

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It's not as easy as the author puts it. You can't easily get out of a 10 year multibillion contract just like that. This is Microsoft we're talking about. Have you met their legal team? By the time they're done with you. you'll have to Bing your name. just to be sure you still exist.

vhaakmat said,
It's not as easy as the author puts it. You can't easily get out of a 10 year multibillion contract just like that. This is Microsoft we're talking about. Have you met their legal team? By the time they're done with you. you'll have to Bing your name. just to be sure you still exist.

True and good one that made me laugh.

Sonne said,
So MS will right back at the bottom of search, sounds good to me

Nothing screams clinical insanity like essentially saying you prefer the code quality coming out of Facebook to that of Microsoft.

I just can't figure how Yahoo went wrong...could it be the stupid name finally caught up with them...anyone with a @yahoo.com address is pegged as dated almost as much as @aol.com...a good example of a good company, good product and content that still managed to fail...slow death at least.

Hahaiah said,
I just can't figure how Yahoo went wrong...could it be the stupid name finally caught up with them...anyone with a @yahoo.com address is pegged as dated almost as much as @aol.com...a good example of a good company, good product and content that still managed to fail...slow death at least.

The name likely plays a part (I always hated it), but I believe that during the largest growth period of high speed Internet, Google was the best search engine. When Google went live, it quickly surpassed the other engines in the quality of search results. Back then it sure as hell had the cleanest interface of the search engines. I used a program back then called Coppernic which aggrigated search results across all engines, and I think it took less than 2 years for Google to consistantly be #1 in good results.

Yahoo probably managed to keep what I assume is a core group of original users who barely do anything online, at least not enough to try to see if something else is better. I seriously doubt Yahoo has had any real new user growth in the last decade. They offer nothing that other services don't surpass. Like the way some people still use AOL, even if they no longer use it as their ISP.

this just in, facebook integrates friends information into search!
type in a movie - and your friends movie that he is watching will come up!
type in a song - your friends song will come up!
type in a location - your friends favorite location will come up!

I dont see this facebook search going anywhere big....

Yahoo is nice for some extra points of marketshare for Bing Search but in the long-term it doesnt provide growth. Microsoft is better off finding partners that have growth potential and not a dog like Yahoo.

If you ask me, Microsoft is paying yahoo big money for a lot of crap. Yahoo is full of crapware/spyware/toolbar search sites as "partner sites" and the traffic is a joke. Breaking the contract and paying Microsoft a large chunk of change may be the best thing for MS so MS can focus on its own services rather than Yahoo who is dead to just about everyone.

spudtrooper said,
If you ask me, Microsoft is paying yahoo big money for a lot of crap. Yahoo is full of crapware/spyware/toolbar search sites as "partner sites" and the traffic is a joke. Breaking the contract and paying Microsoft a large chunk of change may be the best thing for MS so MS can focus on its own services rather than Yahoo who is dead to just about everyone.

Page is bloated too.

dagamer34 said,
Yeah... I'm never going to use Facebook to search for stuff. Period.

Which would end up getting people results from facebook as well, which would really blow and distract from what you really are looking for, no?

seems a bit weird seeing facebook is already powered by Bing for search. So Yahoo will ditch MS bing for Facebook Bing???? WTF.

korupt_one said,
seems a bit weird seeing facebook is already powered by Bing for search. So Yahoo will ditch MS bing for Facebook Bing???? WTF.

Facebook is backed by MS, Yahoo is backed by MS. It is an elaborated scam.

How much would Yahoo have to pay Microsoft to break the contract? Surely you can't break a 10 year contract only 3 years in without some serious penalty.

Anyway... why bother? Facebook doesn't even have a search engine of it's own yet, and the one they do have is powered by Bing. Creating Bing has been a huge money pit for Microsoft. Facebook doesn't have the money to compete, and neither does Yahoo.

This is similar to the "Facebook Phone"... just seems like bad business decisions if true. But maybe I'm missing something.

rfirth said,
How much would Yahoo have to pay Microsoft to break the contract? Surely you can't break a 10 year contract only 3 years in without some serious penalty.
This is similar to the "Facebook Phone"... just seems like bad business decisions if true. But maybe I'm missing something.

exactly, i mean... Google is google, the reason why they are so popular is that they were first. Like netflix, like windows... like everything that comes first its hard to take over if not impossible. Yahoo ditched its own system for bing, now they think a BRAND NEW system will somehow turn the tides, if anything shareholders will get excited but thats about it...

Reality is, bing is the closest you will get to overtaking google for a long, long time. There are thousands of search providers... None of which have gotten remotely close and i dont see what could be THAT revolutionary in the search industry besides changing results.

Altavista preceded Google by about 5 years. Yahoo! is older than Google as well and was considered the new upstart to topple Altavista's reign as the search engine to use. Ask (Jeeves) was also a contender.

Nowadays it is more a competition for second place, just like happens with the UK supermarkets: Tesco is so ahead of the others there's no point trying to beat them, but every reason to be the top alternative.

mrbester said,
Altavista preceded Google by about 5 years. Yahoo! is older than Google as well and was considered the new upstart to topple Altavista's reign as the search engine to use. Ask (Jeeves) was also a contender.

Nowadays it is more a competition for second place, just like happens with the UK supermarkets: Tesco is so ahead of the others there's no point trying to beat them, but every reason to be the top alternative.

What about Wal*Mart? not sure how many you have there so, thought I would ask.

Rabbit94 said,
i thought bing was already in talks with facebook over search deal or something

Indeed. Bing already powers Facebook search.

What a surprise!

Yahoo refuses to honour MS IE10's "Do Not Track"
Yahoo dumps MS Bing

Yahoo takes bat and ball and goes home.