Yahoo has entered into a new search deal with Google that will lead to the search giant providing Yahoo with search ads, algorithmic search and image search services for both desktop and mobile.
The new arrangement effective October 1st and lasting until the end of 2018, will permit Yahoo to decide which search queries to send to Google and will not have to meet a minimum requirement of queries.
Google’s offerings complement Yahoo’s own search technologies and ad products, as well as the search services provided by Microsoft, with which Yahoo signed a similar agreement for 10 years in 2010..
Yahoo is trying to squeeze more money out of its search engine, but lacks the technology to better manage queries and more adequately serve ads. Yahoo believes that by partnering with Google, the most dominant search engine on the planet, it can get a slice of the revenue from a company with more efficient and lucrative search and ad infrastructure. According to industry analysts, Yahoo's search network only notched 12.7 percent marketshare in US desktop searches in August, while Google has nearly 64 percent.
In 2010, when Yahoo and Microsoft signed their partnership, the two companies hoped to compete better with Google by combining their respective strengths in technology and reach. In April 2015, the two loosened their agreement with a termination clause that would let either company walk away from the deal with four months' notice.