Yahoo scores favorable terms in re-negotiated Bing search deal

Under the new terms, Yahoo will now only depend on Microsoft for 51% of its search results and ads, leaving the door open for Yahoo to push users towards their own potential search offering for just under half of all searches conducted through its site. For Bing ads run on its site, Yahoo will now keep 93% of the revenue generated — up from the 88% share it was entitled to as part of the original agreement. Additionally, Yahoo can now use Bing's algorithm to display search results without displaying Microsoft's ad listings next to them. In this scenario, Yahoo would pay Microsoft a fee for the results, but wouldn't owe it any revenue for ads.

Finally, after October 1, 2015, both companies will have the right to terminate the agreement at any point for any reason. This is in contrast to the original terms, which stated that the agreement could only be terminated if certain performance goals weren't met.

In any event, it looks like the new terms favor Yahoo heavily. Particularly interesting is the company's reduced reliance on Bing to serve up search results. This could open the door for Yahoo to slowly build out its own search offering while retaining the ability to lean on Bing's algorithms for just over half of the searches conducted through its sites.

Source: SEC; Via: Business Insider

Dan Thorp-Lancaster is the former Editor-in-Chief of Windows Central. He began working with Windows Central, Android Central, and iMore as a news writer in 2014 and is obsessed with tech of all sorts. You can follow Dan on Twitter @DthorpL and Instagram @heyitsdtl

78 Comments
  • Who still uses yahoo search? Maybe few senior people, with time the yahoo search traffic should go down making it unprofitable for Yahoo to keep pouring resources into search.
  • Agreed
  • Yeah, because what software and/or services a person uses somehow correlates to their age. Not. Hey you kids get off my search engine!
  • Then I hope Microsoft could also instruct yahoo to update their flickr and tumblr apps
  • Not everything move through apps. Yahoo is the 4th website only trailing Google, Facebook, YouTube. This really suck MSFT getting burned again by another company that they help to coexist. When will MSFT learn to stop helping. dead beats..
    http://www.alexa.com/topsites
  • The only way that Yahoo would be allowed to negotiate is if it wasn't getting the legal amount of promised revenue from Microsoft. Really, this is just Yahoo getting a fair deal, not a screw you to Microsoft.
  • Microsoft needs a better CEO.
  • They said the same thing about Ballmer. Posted via the Windows Phone Central App for Android
  • Microsoft isn't helping deadbeats. Microsoft needs Yahoo badly, because they are generating around half of the Bing searches currently.  Without Yahoo, Bing's market share would be cut in half. 
  • How does monopoly and hegemony of companies helps end users like us? Whatever the name of a company/corporation is. Well except if you have shares in Microsoft.
  • 12.7% in USA.
  • A lot of people still use Yahoo mail...
  • Here in Brazil we can only use google. I can't find anything on Bing.
  • I find bing results pretty poor in Australia too
  • I use Bing in Australia with no issues. Sometimes I don't find what I'm looking for and resort to Google but Google brings back same results if not worse.
  • I agree - I find using Bing in Australia an overall frustrating experience. I often have to search and re-search, constantly tweaking my terms to get the context right - then I go to Google and use the first search term and I get the results I want every time.
  • The Dutch bing is quite Allright. I would not say on par with Google but it's close. But Bing does have far better image results then Google has, that's fot sure! Posted via the Windows Central App for Android
  • Indeed, Bing should improve its service in Brasil. But I gladly find good results for pictures though.
  • And Videos. =D
  • You can't find anything on Bing... Really? What are you looking for where you can not find ANYTHING on Bing? Most people don't even know how to use a search engine... They search for a particular website by typing the name of that website and then click on the first result. Others perform actual queries and find answers through the search engine itself or the resulting page returns. The top result isn't always the best result... But clicking on the correct result should make the engine better. So just because Bing might tank the results differently, it doesn't mean it didn't find the result you were looking for. It may mean it has less data to tank the page in the order you were searching for. However, you started you can't find anything on Bing. What exactly are you searching for again where it returns no results?
  • I find that Bing doesn't get the context of words right - let's say you have a book, movie, computer game, and programming concept that all use the same word. Even after stuffing the search with keywords it still gets the context wrong. Google gets it right every time.
  • Absolutely agree with I used Bing to try and find the PAL Sega Mega Drive box art for Strider and I found nothing but I typed the same thing on my iPhone 5s using Google and I. Found it instantly. Microsoft has a long way to go to match Google. I currently use a Lumia 535and already I hate Bing.
  • Stop being a fanboy.
    Outside the US, Bing just isn't very good.
    I live in the UK. I really try to use Bing because I don't like Google --- but the search results are just shoddy.
    MS has got to stop with this ridiculous USA is first approach.
  • Lol, Bing is 2nd to Google in the US too. Google has better search operators to refine searches more, and is just generally more accurate. Don't get me wrong I want Bing to be better but it's just not good enough yet. If they had more operators it would be far better. Posted via the Windows Central App for Android
  • Yahoo is still a thing?
  • Hold on a second while I "yahoo" that.
  • Who says this❓
  • I use yahoo mail for my facebook but nothing else yahoo only my mom does but she switched to Bing now haha
  • No one.. That was sarcasm.
  • Well then it was misinformed sarcasm: people in Japan literally use Yahoo as a verb to refer to searching online.
  • Touchy much?
  • Lol... Yeah, I know... I was agreeing with you.
  • iirc Firefox address bar search defaults to yahoo.
  • Google i think
  • No, Yahoo is the default search engine for Firefox in the US. New negotiation due to Google Chrome AFAIK. Posted via the Windows Central App for Android
  • There are people who use bing then why you surprise when people use yahoo
  • Japanese!  In Japan Yahoo is still big compared to Google.  Yes this is absolutely true.
  • Exactly!
  • They have everything. Shopping, auction etc. Also have yahoo broadband.
  • I also believe yahoo geocities is still running in Japan too!
  • What about Android? I'm assuming it's the biggest since Japanese largely prefer domestic brands and afaik all their smartphones use Android...
  • I'm sorry to disappoint you.  I have been travelling to Japan since 2005 and it is an Apple country when it comes with mobile phones.  Sure Android is there but its only second to Apple.  What I do not understand is that Japan is Microsoft country when it comes to the business/enterprise.  I have never realized Excel can do miracles until I saw those Japanese do crazy things in Excel however, that did not translate to the phones where Windows is 0.0%.  Yes, I was the only one with WP during my visit last year and I don't know if they think I'm crazy or cool for having it but they often ask me about my phone.  Actually, some Japanese are interested with Windows Phone but none of the carriers have it.  I only saw Nokia/Windows Phones like 930, 635 being sold in Akihabara as open-line phones and that's it.  I even attended a Nokia/Microsoft event there where I won a Lumia 800!  I hope Microsoft turns it around with Windows 10.
  • That is very surprising, though to clarify, by "their smartphones" I meant their domestic smartphone companies. Maybe Apple just gained so much market penetration that Android couldn't catch up? I thought that the Japanese have a very strong devotion to domestic brands.
  • I honestly haven't used yahoo search in years. Or anything yahoo related to be honest. Yahoo needs to stay partnered with Bing because they have very little chance of becoming anything worthwhile with google and Bing as competitors.
  • The only thing I still hear related to Yahoo in the US is fantasy football, lol
  • I dont know a single person that uses Yahoo. I heavily push Bing in my house.
  • Kinda seems like MS is getting screwed on this new deal...
  • With this deal, Microsoft gets data from an extra 12.7% of Internet traffic in the US. This makes Bing's market share 1/3 of all internet searches instead of 1/5. For Bing to collect 1/3 of internet traffic.... Microsoft should do everything in its power to keep this deal, even if it means giving 100% of all ad revenue to Yahoo. Yahoo's presence is much too big to ignore.
  • Agreed
  • I only use Yahoo Answers, if it showed from a bing search
  • Yahoo Answers is a great service. Used to be a top contributor.
  • Yahoo Answers is horrible, Quora is light years better. Just horrible horrible standard of quality answers.
  • As compared against Quora, Yahoo Answers is way behind in terms of quality answers, I agree. But that was not the case few years back when it used to be the top answers community. Quora didn't even exist back then.
  • Ah jes that is true
  • Haven't used yahoo for little under a decade lol.
  • why would anyone bother using yahoo!! it is just ad engine. I love duckduckgo, a lot better than bing and even google sometime.
  • They're all ad engines, how do you think they make money?
  • You know, I was just thinking about Yahoo the other day. They're never in any conversation about tech nowadays, but just the other day, I was skimming through channels and stopped on one of those stupid clickbait channels while I browsed Windows Central on my phone and some actress was talking about how cool it was to work with Yahoo on whatever project she was working on, then just this morning, I hear on Elvis Duran that they're advertising some Yahoo app. Not just mail, but basically MSN News, Finance, and Weather in one app. Theyre kinda everywhere.... But kinda not at the same time.
  • Yahoo searches have gone up a lot since the Mozilla deal. A lot of Firefox users probably don't even realize it switched from Google.
  • After October, why should Yahoo stick with this deal? The use of algorithms? is that it?
  • I and everyone in my home solely use Bing (because its results are generally best and Google is evil) however I use myYahoo.com as one of my homepages' because I can aggregate and edit my dozens and dozens of RSS news feeds using tabs much easier than Google or MSN. Hate Google and MSN anyway the way they force their content into my stuff while yahoo lets me make it just how I like it. While ads on yahoo are relevant to my Bing searches they aren't as creepy, will let me opt out, and and don't follow me to other sites like they do if I was to use Google.
  • Yahoo is used to be huge in viet nam. Mail and especially messenger. Now only a few years, it become non existent.
  • I still have yahoo as my main mail account :(
  • So has my dad! :D
  • Yahoo would have been better off under the Microsoft umbrella.
  • Microsoft need new CEO.
  • Can we score some of their favourable apps....?
  • that's what i was hoping for in this deal, but heard nothing sadly
  • I would have improved it to 90% or promise them. .5% increase each year. NR
  • Yahoo's dead why don't they realise this?
  • Yahoo! News is the second-ranked global news site behind Reddit and ahead of Cnn.com according to Alexa. It makes sense that Yahoo! Search volume would also be very high.
    I know I seldom if ever use either. Most of their stories are junk IMO.
  • When in India?
  • When in your rectum?
  • When an asshole Posted via the Windows Phone Central App for Android
  • My default search engine at home and in the office is Bing. I even changed my officemates search engines to Bing. Well, at least three people in Saudi Arabia are using Bing.
    Do your thing by supporting Bing. If you found the results on Bing as vague, then that's the time to use Google. Just prioritize Bing.
  • Yes this is a better deal for Yahoo (kin of, not entirely, thought.) But it is a double edged sword, Bing and Google have something Yahoo does not, a platform. So yes MS with its W10 release could see its Bing usage growth worldwide. Marissa pissed off many loyal fans. And Yahoo queries are just awful. What about if Bing pick some market share without Yahoo's help? Have you think about that? MS could see that it doesn't need them and just cut tight.
  • What kind of business sense would agree to a contractual partnership where the agreement benefits the other party more so than your own?
    ...
    Who still uses yahoo anyway? Since Bing, I've not used google nor yahoo. Go figure. Lol
  • Great, now give some damn yahoo apps on Windows......specifically, Fantasy Football app!