Doing deals with your competitors: Yahoo and Google
Yahoo seem to be following the 'keeping your friends close but your enemies closer' model of business, with its deal with Google. I just wonder if the rise in mobile ad blocking is going to impact Yahoo. Is Yahoo digitally drowning here?
Times of India reports that Yahoo Inc said it had signed a search advertising deal with Google Inc, providing a potential boost to Marissa Mayer's efforts to turn around the company, which also reported revenue and profit that fell short of market estimates. The deal with Google, a unit of Alphabet Inc, builds on an existing search partnership Microsoft Corp under which Yahoo gets a percentage of revenue from ads displayed on its sites.
Yahoo, whose shares were down 1.6% in after-hours trading, said the companies have agreed to delay implementation of the deal in the United States to allow the antitrust division of the Department of Justice to review it. Yahoo has been struggling to boost revenue from ad sales in the face of stiff competition from Google and Facebook.