Yahoo has recently renewed search pact with Microsoft. This would help Yahoo to have more flexibility in enhancing the search experience for its mobile and desktop users.
The agreement which was previously signed in 2010 had a clause where Yahoo can terminate the deal only if certain revenue metrics were not met. However, the new pact allows more freedom for either of the companies to end the contract.
Yahoo has also modified how their advertisement sales are handled. Microsoft now exclusively handles Microsoft Bing ads on Yahoo search. Yahoo however, sells advertisements through its own Gemini ads platform too.
Analysts state that this deal is an attempt by Microsoft to compete with Google and also to drive more revenue from online advertising. End of first quarter 2015, Bing had a 8.1 percent share on worldwide search market which was slightly higher than Yahoo’s 7.7 percent market share. Google monopoly continued with 62.3 percent market share.
