Here are three words in the same sentence that doesn’t seem natural; Google, Yahoo, Partnership. Yes, that is right! Google has partnered with its arch rival Yahoo in a partnership that will see the two search engines share Internet’s Search Engine Result Pages (SERPs) and advertisements.
For Yahoo, this is not something new. The search engine had partnered with Microsoft’s Bing from as early as 2009 in the same deal, although that partnership ended recently. Yahoo, rather too soon, jumped into the same deal it had with Bing, by signing up another deal with the biggest search engine in the world, Google.
According to the T&Cs of the newly founded Google and Yahoo working relationship, Google will provide Yahoo (both on the desktop and mobile search) with search results. This deal ends in December 2018 and will include image search services and advertisements (AdSense).
The choice on which search on Yahoo will be redirected to Google will remain at the discretion of Yahoo. However, the deal between the two search engines is a “non-exclusive” one. In other words, Yahoo is at liberty to redirect its search queries through other search engines including Microsoft’s Bing.
At this point, you are probably wondering; How could such a deal possibly benefit Yahoo?
Well, according to the regulatory filing report: “Google will pay Yahoo a percentage of the gross revenue from AFS (Adverting for Search) ads displayed on Yahoo Properties or Affiliate Sites. The percentage will vary depending on whether the ads are displayed on U.S. desktop sites, non-U.S. desktop sites or on the tablet or mobile phone versions of the Yahoo Properties or its Affiliate Sites.
Yahoo will also pay Google fees for requests for image search results or web algorithmic search results.”
There is no doubt that most people could not possibly imagine the biggest and second biggest Internet search engine working together. However, it is worth noting that Yahoo’s Q3 net earnings report that amounted to just $76 million was below the company’s stakeholders’ expectations. Whichever way you look at it, Yahoo needs this deal if it is to continue surviving in the search engine marketplace, although Google is said to command more than 50% of this space.