"In October, the Company reached an agreement with Google that provides Yahoo with additional flexibility to choose among suppliers of search results and ads," Yahoo wrote in its earnings. "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."
Yahoo now has search deals with its two bigger competitors but the majority of Yahoo Search ads must still come from Bing, per the company's partnership with Microsoft. "We believe that by establishing partnerships with both leaders in the search space we can achieve a competitive search dynamic that will provide a better experience for our users and advertisers and improve our monetization," Mayer said during the company's earnings call.
Though the deal is a good step forward for Yahoo and allows it to decrease its reliance on Microsoft, it's impact may not be much, said eMarketer analyst Martin Utreras. “In terms of their bottom line, those search deals are revenue-sharing deals, which are not going to significantly impact their capacity to generate profits," Utreras said. "Yahoo has a real problem and needs to figure out how to grow their business and revitalize their brand," said Sean Bower, chief editor of the Wall Street Informer. "The competition is fierce and the clock is ticking for Marissa Mayer. The honeymoon period is over and investors want results."
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