Yahoo reportedly wants to kick Microsoft to the curb


Yahoo CEO Marissa Mayer reportedly doesn't want to deal with Microsoft's Bing search engine anymore

On Tuesday, Yahoo reported in a new government filing that it has renewed a search engine revenue deal with Microsoft until March 31, 2014. That agreement is just a small part of Yahoo's overall deal with Microsoft that sees the website using the Bing search engine.

The Yahoo-Bing partnership was signed in 2009, but in more practical terms, started in early 2010. Now Yahoo's current CEO Marissa Mayer is reportedly looking to break the deal well ahead of its 10 year lifespan. The Wall Street Journal, via unnamed sources, claims that Mayer has been trying to cut the Microsoft contract ever since she came on board as CEO in 2012.

However, the report also states that the Yahoo-Bing deal isn't going away anytime soon. Analysts claim the earliest opportunity for the agreement between the two companies to be broken is 2015. Yahoo is within its right to break the contract if the revenue it gets per search goes down below an unspecified level.

The story also claims that the search agreement could be cut off if Microsoft were to sell off its Bing business. What's more interesting is that the article claims Microsoft actually though about doing just that in 2012. There's no other word on why Microsoft would consider such a move nor why they apparently decided against it.

Yahoo could develop its own Internet search technology as a replacement or it could made a similar search engine agreement with Google. Such a deal could run into antitrust issues with the US government, but any such agreement could be structured to avoid such problems.

Source: Wall Street Journal | Image via Yahoo

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23 Comments

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I find this very hard to believe.

First, if she wanted out of this contract, they wouldn't have renewed their arrangement recently.

And as integral as Bing is (and has been) to Microsoft's other businesses, there is just no way it was ever considered to sell it off... Bing doesn't even need to be profitable alone, as it supports so many other profitable endeavers...

lol.. you do realize that Yahoo invented Hadoop and then open sourced it. Hadoop was their version of Map Reduce, which Google never released. Hadoop is used in like 85% of all cloud computing software from Amazon, Microsoft Azure, Rackspace, Facebook, Twitter and so much more. The yahoo portal might be a joke, but they have millions of users using their email, news, message boards, search, fantasy sports leagues and others.

ingramator said,
Lol this chick doesn't know what she's doing, Yahoo should just give up as a company, noone uses their services.

Yahoo's worldwide unique visitors exceeds 600 million each month and over 160 million in the U.S. alone. So, no, not no one.

ingramator said,
Lol this chick doesn't know what she's doing, Yahoo should just give up as a company, noone uses their services.

Yeah cause you're the expert.

ingramator said,
Lol this chick doesn't know what she's doing, Yahoo should just give up as a company, noone uses their services.
The Yahoo website still have more visitors than msn.com

ingramator said,
Lol this chick doesn't know what she's doing, Yahoo should just give up as a company, noone uses their services.
She's just trying to fix the huge mistake made by her predecessor

wingliston said,
I haven't used Yahoo since 1999. Geocities ftw!

Actually i hates it when yahoo accquires the Geocities as i knew for sure, yahoo will fu**** it.

And indeed, yahoo start adding bloated ads to my geocities pages, which then I retaliates by adding various malformed html tags to nullifies the ads.
This practice seems to be wide spread among yahoo-geocities users, which prompt yahoo to even put more bloated, javascript heavy ads.

By the time yahoo enacted its unpopular data transfer limit for the geocities, I concluded that geocities became hostiles to exisiting users, so i start to rehost the my geocities pages elsewhere.

How exactly does Yahoo make it's money? And why would they want to spend more money on search to compete in a market that simply doesn't have room for more competition?

Raa said,
I'd still hit it.

Is that appropriate? Just because she is female, your first response is whether or not you'd "hit it"?

excalpius said,
Is that appropriate? Just because she is female, your first response is whether or not you'd "hit it"?

Apparently it's 'cool' to reduce women to mere sexual objects.

I was referring to the Yahoo search engine. I'd "hit up" Yahoo, whether it was partnered with Microsoft or not.
Sorry for the ambiguity.


Worth a side mention : The photo of the CEO changed between my original post and this one.