Yahoo has entered into a deal with long-term rival Google, the company has announced. Although it isn’t an exclusive along the lines of Yahoo’s previous hook up with Microsoft, the partnership will mean more options become available.
The new deal needs approval from the US Department of Justice and also regulators in India and the EU, and if it gets the go ahead, it is set to run until the end of 2018.
A press release from Yahoo set out the background to the new deal and how it will run alongside the company’s tie-in with Microsoft.
The statement read: “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.”
Last April, Yahoo and Microsoft amended their own 2009 deal and claimed to be “committed to maximising the alliance.” The tweaks allowed Yahoo increased flexibility regarding the way it used any platform and became non-exclusive for both desktop and mobile.
To an outsider, a complex set of alliances between three of the biggest online and international digital rival corporations might seem unlikely.
Microsoft reacted to the news about Yahoo’s new arrangement with Google by saying: “We remain committed to the Yahoo syndication partnership and will continue to serve the majority of Yahoo traffic as outlined in our contract extension. Yahoo is a valued partner and we look forward to continuing to serve our advertising customers through the Bing Ads marketplace.”
Microsoft will still be the exclusive salesforce for ads delivered by the Bing Ads platform, and Yahoo’s own salesforce will cover the Gemini ads platform.
The new deal does mean that businesses previously focusing on Google will have an increase in
visibility across Yahoo platforms, and that Google will pay a cut of gross revenues generated from AFS ads that are shown on its properties or affiliates.