Yahoo to incorporate Google search results as Q3 revenues slip

21 Oct 2015

Marissa Mayer

Now into its fourth year with Marissa Mayer at the helm, Yahoo has forged a search deal with Google, after revising a long-time search pact with Microsoft. Now Google search results will appear alongside Bing results.

The news came as Yahoo reported disappointing Q3 results with revenues of $1.1bn down from $1.2bn a year ago.

Mobile revenues at Yahoo also slipped to US$207m from US$271m a year ago.

“Our Q3 results were largely within our forecasted expectations — our GAAP revenue grew 7pc year-over-year and our Mavens revenue grew 43pc. As we move into 2016, we will work to narrow our strategy, focusing on fewer products with higher quality to achieve improved growth and profitability,” said Mayer, who is Yahoo CEO.

“In addition to sharpening focus within core business growth, our top priority is the planned spinoff of Aabaco Holdings. This is an important moment for the company, and we continue to strive to complete the spin as quickly as we can.”

Into Google’s arms

Yahoo reported that search revenue for Q3 was US$870m, up 2pc.

In a regulatory filing, Yahoo revealed a new search deal with Google whereby Google will provide search results, search ads and image search services on desktop and mobile screens.

The non-exclusive deal means Yahoo will continue working with Microsoft as well.

The deal with Google expires at the end of 2018 and will see Google provide Yahoo with search ads through AdSense for Search and image search services.

Under the deal, Yahoo has the discretion to select which search queries to send to Google and has no obligation for a minimum number of search queries.

Earlier this year, Mayer and Microsoft CEO Satya Nadella revised the exclusive search deal between Yahoo and Microsoft on desktops, which allowed Yahoo to explore other partnerships for search.

Marissa Mayer image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years