The alliance between Microsoft and Yahoo in search engines could come to an end

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In 2010, Microsoft and Yahoo signed a strategic agreementto join forces in the search engine market and thus better face the industry leader: Google. Such collaboration included the formation of a joint online network, and Yahoo&39;s outsourcing of search technology to Microsoft."

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This contract was initially for 10 years, but included a renegotiation clause under which Yahoo and Microsoft could discuss again the terms of collaboration (or even dissolve it) once 5 years have elapsed since its inception.Finally, the 2 companies have agreed to use this clause, along with another that extends the negotiation period to 60 days, so that at this time and until next month they will hold meetings to settle the future of collaboration among its search engines."

Since the collaboration began, Bing has been growing at the expense of Yahoo

Apparently, the results of the agreement 5 years after its inception have been somewhat mediocre. The combined market share of Bing and Yahoo in the United States remains the same as in 2010 (close to 30%), except that it is now the Microsoft search engine that holds the second place against Google, with almost 20% from market-share . In other words, Bing has grown at the expense of Yahoo.

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If we add to that the fact that the current CEO of Yahoo, Marissa Mayer, has been critical of the agreement since she took over the company in 2012, it is very likely that the big Y company is trying to terminate the contractInternal company sources indicated in 2014 that Mayer > The current CEO of Yahoo hates the agreement with Microsoft, according to internal company sources."

On the other hand, Microsoft must be trying to stop the dissolution of the contract, perhaps by proposing a deal that includes greater benefits for Yahoo, or perhaps yielding in some other aspect, since if both companies agreed to end the agreement it would not explain why the negotiations are lasting so long.

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The new deadline for Microsoft and Yahoo to settle this renegotiation is April 24. On that day (or maybe a little earlier) white smoke should come out>"

Via | Business Insider