Technology

Will Yahoo Dump Microsoft Search Pact?

Marissa Mayer, the new President and CEO of Yahoo!, has always been displeased with the Web search partnership that her company has had with Microsoft. Her recent declarations have made analysts wonder whether Yahoo will dump the search pact or not in the following period, CNET New reports.

When she first arrived at Yahoo! last year, Mayer had several changes in mind to improve the company’s critical condition. Getting rid of the Microsoft search pact was one of the measures that she planned to implement, but the new CEO couldn’t find the right way to do it. Given that she hasn’t spoken about the Web search partnership in a while, Mayer has left analysts with the impression that she is willing to continue the pact; yet, close sources claim that the CEO has returned to her initial decision of parting ways with Microsoft.

Breaking Yahoo’s pact with Microsoft seems easy in theory, but the two companies have agreed to work together for a 10-year period. The partnership was signed in 2010, so Mayer is forced to observe the provisions of the contract until 2020. Based on the documents, Microsoft has to power Yahoo’s searches, while the Internet company would become a selling force for Microsoft’s premium properties.

Mayer is now trying to dissolve the pact by filing a complaint against the software company. Marissa claims that the revenue-per-search guaranteed by the partnership was not attained and is, therefore, asking judges to put an end to the pact. She further justifies her decision by stating in the complaint that Microsoft has extended the RPS guarantee for another year. This is the second extension that the software company has made since the signing of the deal. The first extension expired in March 2013, but Microsoft asked permission for another one-year extension.

The rumors, which were put forward by sources familiar with the matter, have not been denied nor confirmed by Yahoo. The company released a statement on Tuesday describing Microsoft as one of their most important partners.

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Lucienne Molnar is our editor in charge with managing the celebrity and fashion sections of DailyGossip. She currently lives in Seattle and has a lot of experience in the fashion industry, most of it accumulated while working as a part time model for a few popular internet clothing stores.Lucienne is a passionate writer dreaming to create her own fashion line someday.You can get in touch with her at Lucienne.Molnar@dailygossip.org

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