After a disappointing third quarter results, Yahoo has reached an agreement with Google on search and advertising. Under the deal, Google will provide Yahoo with search ads, image search services and algorithmic search starting October 1, 2015 until end of 2018.
The deal with Google on search partnership build on existing partnership with Microsoft.
In the company release on Q3 results, it says, “In October, the Company reached an agreement with Google that provides Yahoo with additional flexibility to choose among suppliers of search results and ads. Google’s offerings complement the search services provided by Microsoft, which remains a strong partner, as well as Yahoo’s own search technologies and ad products.”
Yahoo has been facing stiff competition from the likes of Google and Facebook in ad sales. The company reported a revenue of seven per cent y-o-y at USD 1.22 billion.
Speaking about the Q3 results, Marissa Mayer, CEO of Yahoo said, “Our Q3 results were largely within our forecasted expectations – our GAAP revenue grew seven per cent year-over-year and our Mavens revenue grew 43 per cent. As we move into 2016, we will work to narrow our strategy, focusing on fewer products with higher quality to achieve improved growth and profitability. In addition to sharpening focus within core business growth, our top priority is the planned spinoff of Aabaco Holdings. This is an important moment for the Company, and we continue to strive to complete the spin as quickly as we can.”