Yahoo Inks Search Deal With Google

Yahoo Will Now Be Paid For Search Results By Google

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Marissa Mayer, Yahoo
Marissa Mayer, Yahoo Credit: Simon Dawson/Bloomberg

Call it "GooHoo."

Yahoo has reached a deal with Google to provide search ads for its search results.

While the deal -- which is set to expire October 2018 -- started at the first of this month, it wasn't brought to light until Yahoo's quarterly earnings results, which were released Tuesday afternoon in an 8-K filing.

The deal is still subject to regulatory review.

Last April, Yahoo and Microsoft renewed a search alliance that would help Yahoo renew its own search technology. While negotiating that deal, however, former Google search exec Marissa Mayer had reportedly been trying to wiggle out of the agreement in order to reassert Yahoo's search business. Now, it appears as if Ms. Mayer has found an exit that should increase Yahoo's revenue while opening more doors for advertisers.

The new deal will have Google pay Yahoo a percentage of the gross revenues displayed on Yahoo properties or affiliate sites. The percentage, which was not disclosed, will vary depending on whether the ads are displayed on U.S. desktop sites, tablet or mobile phone versions or Yahoo's affiliate sites.

Yahoo's renegotiated deal with Microsoft Bing was nonexclusive, meaning Yahoo could reach out to the likes of Facebook or Google to also source its results within its search pages. For now, Google will provide Yahoo with search advertisements through Google's AdSense for search service, web search service and image search services.

Additionally,Yahoo can still use Microsoft's Bing or its own technology to provide search ads.

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