Yahoo! used Microsoft CEO appointment as a reason to delay Bing search rollout

When Marissa Mayer took over as the CEO of Yahoo, it quickly became apparent that she did not like the deal with Microsoft to supplement its search services. There are many logical reasons why she protested the deal (and still does to this day) and she is trying to use every trick in her power to derail and slow down the agreement.

Mayer came from the largest search engine on the planet, Google, before taking to the top spot at Yahoo. Considering that Yahoo used to be a search powerhouse and that Bing is now number two, she wants Yahoo to return to search greatness but it’s hard to do that with this ugly Microsoft partnership in the way. 

To help slow down the deployment of Bing as a replacement for Yahoo’s own search service, Mayer recently proclaimed that the CEO transition from Ballmer to Nadella was a justifiable reason to slow the rollout. Recode notes that the rollout of Bing in Hong Kong and Taiwan was delayed and the argument for the slowdown was the appointment of Nadella.

Microsoft and Yahoo signed a 10-year agreement for the search service but Mayer wants out and she is not shy about stating it publicly. She believes that search is a core service of the site and by allowing a third-party to control the experience; it puts Yahoo at a disadvantage.

Seeing that Yahoo has not found a way to remove the partnership with Bing, we suspect that Microsoft is not willing to rescind it’s agreement either as the company wants to take ahold of the largest piece of the search pie. More so, Yahoo has not found any legal loopholes that would allow it to escape the agreement, which is why Mayer is likely intentionally slowing down the deployment.

With the partnership going sour and Yahoo wanting to distance itself from Bing, where there was once hope that Yahoo and Microsoft would partner on more services, it would appear that the likelihood of that happening anytime soon is quite small to no chance at all.

Source: Recode

Report a problem with article
Previous Story

Grand Theft Auto: San Andreas arrives in the Windows store

Next Story

Microsoft launches Bing Code Search extension for Visual Studio

44 Comments

Commenting is disabled on this article.

Yahoo has become a cancer of it's industry. They don't seem to be able to do anything right. I hope MS pulls the contract so Yahoo can finally die off.

Good on her. She is just trying to prevent another of MSFT's infamous EEE's (Embrace, Extend and Extinguish).

Bing never fails to make a huge ding to MSFT's profits every year. It is only a matter of time before they try and sell it to another sucker I mean the highest bidder. Why would Marissa want to tie her company to that sinking ship?

i like the thinking that if something makes negative numbers it should be considered a dead limb and cut off - like yt for google right?

bing is a mayor nexus for msft online services and even if it isnt making any money atm it cannot be substituted with a 3rd party engine os selling is not goona happen until the "one msft" devices&services concept is on the table - with nadella you can all forget the outsourcing of online services to 3rd parties

and tbh who the hell cares about yahoo anymore?

recursive said,
Good on her. She is just trying to prevent another of MSFT's infamous EEE's (Embrace, Extend and Extinguish).
Yes, because Yahoo never did that with Flickr, not to mention the 40 (and counting) companies Yahoo's bought so far under her watch, killed their products outright in 99% of the cases, and is still struggling to be anything more than a has-been.

recursive said,
It is only a matter of time before they try and sell it to another sucker I mean the highest bidder.

You clearly have no idea how Microsoft works, nor how important Bing is to their ecosystem. It's not just about web search, it's their knowledge engine.

Actually seeing as how the revenues from yahoo's partnership made up 31% of Yahoo's total revenue it could turn into a huge stumble if she pisses MS of and can't get google to give her a better deal. There is no way they could work up an internal solution unless they currently have some super secret datacenter no ones ever noticed and remarked upon. Ever since I first heard the grumbling about the Bing deal I figured this would either make or break her term.

That said, with everything I've ever heard about the quality of bing in other parts of the world other than the US, I can imagine a lot of more understandable reasons to want to slow down rolling it out in Asia.

blackjezuz said,
That said, with everything I've ever heard about the quality of bing in other parts of the world other than the US, I can imagine a lot of more understandable reasons to want to slow down rolling it out in Asia.
Something's always better than nothing, right? As long as they remain locked into the deal of what possible use is slowing down the roll-out? As you said it's not as if in the mean time Yahoo has managed to magically conjure up a better search experience for those in Asia.

wixostrix said,

You clearly have no idea how Microsoft works, nor how important Bing is to their ecosystem. It's not just about web search, it's their knowledge engine.


don't try to engage irrational MS haters by using knowledge or facts. They are like religious zealots, they have belief on their side. Just poke fun at them like we do

No, Bing is great for what it is currently. Even though it needs work to get to where Google is when it comes to search results, it gets the job done for the most part and you get rewarded just for using bing.

Plus the integration with Windows 8.1 is quite nice, don't think it'll be as great if Bing was owned by someone else.

Dot Matrix said,
It's a jab at the idiots who think MSFT should sell Bing.

And I guess those who also think that Microsoft should sell off all its crown jewels for the sake of a quick buck.

Edited by Mr Nom Nom's, Feb 18 2014, 4:07am : word

Do contracts mean nothing to Marissa Mayer? If she wants out that bad, buy out the contract. You can't just not abide by the contract because you don't like it.

Very childish behavior.

recursive said,
She wasn't the one who signed the deal.

hrhr Recursive, you win the dumbest post of the year award. Congrats.

My twoo cents on it if she makes an agreement with Google to profice the search engine when the contract with Bing expierce.

Yahoo is really losing it's place IMO, they have a few services that people still use but nothing important enough to keep people around. Search isn't something keeping people going to their site, it hasn't been for a very long time. Saying it's core to yahoo, IMO, is wrong. It was once but that was a very long time ago.

"She believes that search is a core service of the site and by allowing a third-party to control the experience; it puts Yahoo at a disadvantage."

Like hell! She'll be running towards those Google green backs as soon as the Bing deal expires.

Yahoo! needs all of the help they can get... they need to quit biting a hand that's giving them money. Put your pride aside and fix the rest of your company first. It's not like Yahoo!'s search was ground-breaking, either...

I think Mayer is right. If search is an core resource in their strategy then they should indeed not outsource it. However search hasn't been a core resource for Yahoo in years. They've lost that race to Google long ago. Microsoft is the only competitor that has a chance simply because they can throw enough money at it to catch and keep up.

Maybe Mayer shouldn't design a strategy around resources she doesn't have. I guess that's the issue with her Google background. All her successes are build on something she doesn't have at Yahoo. I hope for Yahoo that she isn't a one trick pony.

I was shocked when Yahoo announced that they would use a third party for search. It makes sense that the deal with MS is being reconsidered, I mean MS are really a competitor.

derekaw said,
I was shocked when Yahoo announced that they would use a third party for search. It makes sense that the deal with MS is being reconsidered, I mean MS are really a competitor.

But it's too late. Yahoo doesn't have the competences to do it on their own, not anymore. I agree with Figure 8 Dash. It wouldn't suprise me if Mayer is Google's Troyan Horse coming in to kill the combined efford of Microsoft/Yahoo. When the deal is over Yahoo will use Google search and a few years later Mayer will return to Google.