Skip to main content

Yahoo Could Do Search Because It Needs Money

By February 3, 2014Services

Yahoo Could Do Search Because It Needs The Money

Since the long suffering deal that was under consideration between Yahoo with Microsoft has not been doing well enough, so Yahoo can get back in the game of search again. It is revealed that the company has started working on the build of new search products that will be very surprising. If these projects are actually serious and are more than attempts of getting to the discussion with Microsoft on the revenue of pre-search, then Yahoo might be creating a product which can replace approximately one third of the current revenue of Yahoo. In the third quarter of last year’s calendar, Yahoo just earned 31% of the total revenue from the Microsoft search deal.

The search deal of Bing is also of significant importance to Yahoo as the percentage of its revenue. 30% or slightly less of the revenue of the company came from the deal over the nine month- quarter ending last September 30 than the last quarter being reported. What a steady progression from 24 to 27, then to 30 and finally to 31 percent! This is due to continuously losing shares of search market along with other revenues which are declining at more speed than the income from the deal with Microsoft. It can be recalled that last year Microsoft re-upped the revenue guarantee of it with Yahoo keeping in regard the search agreement of Yahoo for the U.S.

Thus, it can be said that financially the Microsoft deal is a boost for Yahoo as it provides the stability of revenue in the transition time. But in reality, Yahoo needs a big amount to cover for it as it is using the future money to buy revenue momentum. But till now it is not helping as seen. Its bold that Yahoo is still trying to cut the flow of income and find a new way out. But the difference between boldness and over excitement still lies. Both Microsoft and Yahoo are not ready to speak on it.

It is worthy to recall that Yahoo do has old search chops. It could shift to search anytime. And may be, Yahoo can invest some of that Alibaba money to get a hold of some Googlers to get this right. It is said that Yahoo did complained last year that revenue per search is worse in case of Microsoft than the time when it uses its own technology. That is one point in favor of Yahoo and it might opt out of the deal by mid 2015.

And for Yahoo it is a mission to make money at the moment for which the search technology of Microsoft is not so good.