Yahoo fails to break search deal with Microsoft
May 9, 2013 Leave a comment
Since becoming Yahoo CEO, Marissa Mayer has tried and failed in attempts to end a 10-year search agreement between Yahoo and Microsoft that was started in 2010.
Mayer has been eyeing a potential deal with Google but contractual restraints due to the Yahoo’s deal with Microsoft may temporarily kills any deal for now. Yahoo and Google have agreed on an alternative search deal should the collaboration with Microsoft end.
Mayer is a former Google executive. I’m wondering if her closeness with some of the Google executives may make a future deal a bit lopsided [in Google’s favor]. In February, Mayer admitted that the 10-year agreement has not resulted in either the market share or revenue that Yahoo wanted to achieve.
The pact expires in 2020 but there is an option in 2015, where either company can back out of the deal or if the Bing engine is sold off. So Mayer has to wait probably up to 2.5 years to kill the pact. [I’m sure Microsoft won’t kill it.]
The previous Yahoo management made the deal. Mayer is stuck with it. Unsure if there is an option to exit the pact [aside from the 2015 date], but if they were smart [clearly not], there should of been a wait to break the deal if [for example] certain levels weren’t achieved or even just a generic buyout clause.
Meyer should face it – she has a huge uphill battle. Even switching to Google’s search engine won’t help. Yahoo has other problems with other Yahoo areas such as the account hacking and the number of spam that comes from Yahoo’s mail server. They should make it harder to send out spam such as restrict the number of BCC/CC/To addresses that can be sent out [at least initially].