Yesterday whilst releasing their earning news, yahoo revealed a new search deal with Google. The deal excludes Europe & will depend on US Department of justice approval.
Yahoo Stated “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.”
You may be wondering how can Google & Yahoo strike a partnership when Microsoft & Yahoo already have a deal, well the Microsoft & Yahoo agreed a deal that ensured Bing ads would account for 51% of the desktop searches that Yahoo services. With Yahoo and any other third party advertisers of their choice combining to provide the other 49%.
Well in July Yahoo were testing Google ads and this was seemingly a huge success.
Google had previously worked with Yahoo before back in 2000 and they maintained this relationship until 2004 when Yahoo developed their own ad system.
You can read in much greater detail the extent of their new deal here.