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

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