IndustryYahoo and Microsoft Amend Search Agreement

Yahoo and Microsoft Amend Search Agreement

After six years of rumors around the strength of the partnership, Yahoo and Microsoft have reached a new agreement, which splits ad sales and ends exclusivity.

After six years and a few rough patches, Microsoft and Yahoo have once again renewed their search partnership, with a few changes.

First, Yahoo will have greater freedom to explore other search platforms. In the past, Yahoo was rumored to be seeking a partnership with Google, and under the new terms, Microsoft and Yahoo’s partnership will no longer be exclusive for mobile and desktop. Under the new agreement, Yahoo will continue to serve Bing ads on desktop and mobile, as well as use Bing search results for the majority of its desktop search traffic, though the exact number was undisclosed.

Microsoft and Yahoo are also making changes to the way that ads are served. Microsoft will now maintain control of the Bing ads salesforce, while Yahoo will take full control of its Gemini ads salesforce, which will leave Bing free to serve its own ads side by side with Yahoo search results.

In a prepared statement, Yahoo chief executive (CEO) Marissa Mayer said the new agreement will be an impetus for innovation. “Over the past few months, Satya [Nadella, CEO of Microsoft Corp.,] and I have worked closely together to establish a revised search agreement that allows us to enhance our user experience and innovate more in our search business,” Mayer said. “This renewed agreement opens up significant opportunities in our partnership that I’m very excited to explore.”

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