Yahoo CEO: Bing deal isn't working well


Yahoo CEO Marissa Mayer said Tuesday that her company isn't happy with the results from its Bing partnership.

Marissa Mayer, Yahoo's chief executive, isn't happy with how the Yahoo-Bing search deal is performing, she said at an event Tuesday.

According to Mayer, the deal hasn't given the technology company the kind of results it expected when it entered into 10-year a partnership with Microsoft in 2010. The problem, Mayer said, was that Yahoo hasn't benefited financially from the deal, and the company has also seen its market share decrease.

"One of the points of the alliance is that we collectively want to grow share rather than just trading share with each other," she said at the Goldman Sachs Technology and Internet Conference in San Francisco, according to Reuters.

The deal has been beneficial for Microsoft's Bing search engine, as it passed Yahoo to become the No. 2 search engine in the United States for the first time in September 2010 shortly after the deal went into effect. Bing has since maintained that position while Yahoo's market share continues to erode.

Yahoo's dissatisfaction with the deal has been widely speculated, as a rumor circulated late last year that it would abandon the partnership in favor of one with Facebook, although Facebook later denied the rumor. Shortly after Mayer took over the role of chief executive last year, there were reports she would attempt to get Yahoo out of the deal.

In terms of the monetary aspect of the deal, Mayer was blunt Tuesday in saying her company isn't seeing much benefit. Yahoo's yearly revenue has either been flat or decreased each year since the deal was announced.

"We need to see monetization working better because we know that it can and we've seen other competitors in the space illustrate how well it can work," she said.

Source: Reuters | Image via Yahoo

Report a problem with article
Previous Story

Former Microsoft Xbox team member slams current state of Xbox 360

Next Story

Microsoft assists with new Illinois criminal justice information system

48 Comments

Commenting is disabled on this article.

Yahoo has so much potential. It's like they are just standing still doing nothing. I haven't seen any innovation in years to anything. They revamped mail a tad and a small redesign on there homepage. Big whoopy. They are very popular though. Great place to get news on the front page and read any comments section and it runs into the hundreds of thousands so you know people are going there. They have a ton of services they just are not innovating with anything new that makes them stand out.

Been with Bing for a good couple years already, haven't gone back to Google ever. I'd have to say though, Yahoo is feeling the same as what consumers feel from most Microsoft products, good hype in the beginning to be left without support later on. Just a Microsoft trend I'm afraid; with Microsoft, just be happy with what you get with them up front, not with what they promise.

volodoscope said,
Bing isn't revolutionary, so why would it eat away Google's market share? To be Google-killer, one has to be better than Google.

Better or bring unique features.

They can blame whoever they want but I've tried Yahoo but it's just an ugly and unintuitive site. For some reason I automatically have 25 favorite sites filling up 1/3 of my screen and I dont even have a Yahoo account! Then there is this big square filled with commercials filling up another 1/3. In the middle there is a newsfeed that I'm not interested in.

Whereas Bing looks very clean plus a nice picture every day. I stil think Bing lacks some features but in terms of search results it now matches Google here in the Netherlands. So I dont think its all that weird that Yahoo is doing poorly and that Bing is picking up the pieces. If there deal isnt working out then its on Yahoo for being nothing more then a big commercial.

The problem, Mayer said, was that Yahoo hasn't benefited financially from the deal, and the company has also seen its market share decrease.

somewhere:

microsoft
This Yahoo deal is working out perfectly!

Compeitition is good, even where it doesn't feel needed, because elseway there would be no reason to improve. Go Yahoo & Bing!

WIll teach them for not reaching out to the rest of the world, I have never heard anything from Yahoo since I'm born and living in the UK and France.

I'm not sure what anyone honestly expected. Yahoo was originally an online powerhouse because they innovated for every area that they existed. After Google crushed them in search, they pretty much shutdown everything; the only thing I use Yahoo for anymore is Fantasy Football.

Picking up a then-competitor's search engine to power your own was clearly a one-way deal in favor of the competitor. It worked out quite well for Microsoft, as they get the search impressions, but Yahoo almost instantly lost its status as an advanced technology company. Maintaining a Fantasy Football site, a decent news portal, and a decent email offering does not make one a strong company.

Unless they make their own ad service, then they are dead in the water. Personally, I think it's too late for Yahoo anyway, unless they pick up development now of something cool.

Breaking news: Former Google exec doesn't like search engine deal with Bing. This story and more shocking details at 11.

Hmm. I've heard this before. Oh yeah now I remember. I guess the same can be said about Elop? Right?

Breaking news: Former Microsoft Head of Division Stephen Elop hates Android says Microsoft's Windows Phone is the best. This story and more shocking details at 11.

What is Yahoo! doing today that is really relevant to vast majority of internet users? My yahoo e-mail account was not my primary - but I did need/want a paid SMTP service, and whilst the need remains, I no longer feel that Yahoo! is my choice provider. What is the value proposition of Yahoo! today?

Is flickr going to keep Yahoo! profitable and alive? In this arena, its competing against Facebook and Google.
I still don't understand why I would want to invest in Yahoo! and how it expects to compete against Facebook and Google

Maybe Yahoo should partner with Apple, see how their controlling stance benefits you as they take 30% of your profits </s>

Actually Bing is growing, just not as quick as Yandex or whatever they're called. BTW, what have you actually got against Bing to begin with? "hun"

Yahoo should first do the basic things right, for instance give your customers the ability to be correctly billed, allow ability to even update billing information. I have a mail account which I pay for - gives me SMTP access for all my mails. When my card expired, I could not change the billing info. Sent mail to their billing/support department - those mail went into black hole. I had to let that account lapse and set up a new account - reconfiguring all my mail clients. Now, I am in the process of leaving them, and use another service.

Brony said,
A pact with MS = pact with the devil. Just ask IBM, Sega and Nokia about it.

Poor Nokia, it's not like they just turned their first profit in years and are seeing growing market share.

yeah, clearly it hasn't worked out well for all the PC's OEMs and intel over the years. I mean MSFT has driven them to the ground

Brony said,
A pact with MS = pact with the devil. Just ask IBM, Sega and Nokia about it.

IBM made billions off of Microsoft in the 1980s...
Sega made millions off of Microsoft in the late 90s and early 00s with both platform and Sega titles for the Xbox..
Nokia is regaining marketshare that was dropping at an incredible rate, and with profit...

So you agree, partnering with Microsoft is usually a good deal?

As for Yahoo, if it wasn't for Bing propping up their 'search' relevance, they were have been dead years ago. Yahoo was a 'directory' based search service that never made the leap to a crawler based engine technology, and instead tried to establish themselves as a customized homepage and email service. (Which directly competes with Hotmail and GMail in addition to MSN.com)

thenetavenger said,

....
As for Yahoo, if it wasn't for Bing propping up their 'search' relevance, they were have been dead years ago. Yahoo was a 'directory' based search service that never made the leap to a crawler based engine technology, and instead tried to establish themselves as a customized homepage and email service. (Which directly competes with Hotmail and GMail in addition to MSN.com)

Before the Yahoo-Bing deal, was Yahoo's search engine really that terrible?

thenetavenger said,

IBM made billions off of Microsoft in the 1980s...
Sega made millions off of Microsoft in the late 90s and early 00s with both platform and Sega titles for the Xbox..
Nokia is regaining marketshare that was dropping at an incredible rate, and with profit...

So you agree, partnering with Microsoft is usually a good deal?

As for Yahoo, if it wasn't for Bing propping up their 'search' relevance, they were have been dead years ago. Yahoo was a 'directory' based search service that never made the leap to a crawler based engine technology, and instead tried to establish themselves as a customized homepage and email service. (Which directly competes with Hotmail and GMail in addition to MSN.com)

IBM, SEGA and Nokia was big company after the deal with MS. MS is a company that applies the "there is no i in team.but there is a i in win and that's why i play", MS create a deal with other companies, then exploit this new team and later betray the team, rinse and repeat.

Doubt it'll make a difference what engine they use.. kind of feels like Yahoo's been going the way of MySpace, etc, disappearing into obscurity. Even if they threw a truckload of cash at Google it wouldn't make much of a difference at this point.

spy beef said,
Wow, she's hot.

11/10 would Bing


I'm not sure where you live and what type of women you have where you live, but that woman is not hot". I could go to Walmart here in Southern California right now and find "hotter" women in about 30 seconds.

JHBrown said,

I'm not sure where you live and what type of women you have where you live, but that woman is not hot". I could go to Walmart here in Southern California right now and find "hotter" women in about 30 seconds.

Some guys who have an overactive sex drive will find any girl hot who doesn't have obvious defects. Wearing heavy makeup helps the illusion even more, and ugly girls will look hot to them.

To Marissa I say Honey, drop the zero and get with a hero -- Google, FTW

No, this news isn't exactly shocking. And paying people to use your search never works just like the lonely kid in school paying people to be his friend.

Google has a billion dollar contract to be default search engine on iOS, they also pay to be the default search engine on firefox.

I don't think u have a point