What’s The Deal?
The deal is this, Yahoo and Google are now joining forces in a deal for search results. For the average computer user, search engine optimization or SEO is probably not something they’re normally concerned with or even aware of. SEO, is how search engines determine web page rankings. Better SEO means a higher ranking with search engines like Yahoo and Google, which translates to better search results listing. When two giants like Google and Yahoo come together in a deal for search results it can have a huge impact on what internet users see as a result of their internet searches. Yahoo believes that the 3-year deal will improve search and provide better user experience. This deal means that Yahoo’s search will by powered partly by Google search and Ads. Google will pay Yahoo a percentage from the ads and Yahoo will pay Google for requests that involve word or image search results.
A Two or Three Party Relationship?
The fact the Yahoo is already hooked up with Microsoft’s Bing may seem like this deal involves all three of the top search engine providers however, this is not the case. While it is true that Yahoo has been teamed up with Microsoft since their deal in 2010, the company has been looking for other ways to expand its search business beyond its deal with Microsoft, which never netted the results they hoped for. In fact, Yahoo had been testing Google’s search results since July and obviously liked what they saw, and came up with this deal with Google, which does not in any way affect their deal with Microsoft. As it turns out, Yahoo’s deal with Microsoft. that was recently renewed in April, allows Yahoo to power 49 percent of its searches by their own system or by a third party.
A Relationship Built To Last Or A Brief Affair
Though the deal between the two giants could mean better search engine optimization for Yahoo, it can still end before its three-year agreement for a number of reasons. Keep in mind that this is not the first time Yahoo and Google have partnered together. Back in 2000, Google powered all search results and ads for both companies. Several years later Yahoo developed its own search engine technology and ad serving systems and broke away from Google. Since then however, Google continued to thrive and grow while Yahoo started to fall behind. Though it may not be the super power it once was, it’s still a major player and could decide not to continue for the duration of the deal. The service agreement has various clauses that allow for either party to terminate the deal for a number of different reasons such as, a material breach subject to certain limitations, the event of a change in control (as defined in the Services Agreement), or within 60 days for any reason at all. The deal was reached in October, so either party could decide to walk away within the next few months for whatever reasons it sees fit. Whether this reunited relationship will last, is something everyone is just going to have to watch for.