Microsoft and Yahoo have amended their 2009 search partnership, giving Yahoo more control over how search results are displayed.
The amended 2009 partnership is to allow the two companies more flexibility in how search results are presented and how the duo companies’ advertising teams are managed.
Under the new deal, Yahoo will have more control over how search results are presented on both desktops and mobile devices, although it will continue to use Bing for a majority of its desktop search traffic.
Microsoft will take over the job of selling ads for Bing, while Yahoo will continue handling its own ads for Gemini, the company’s native ad marketplace.
“Over the past few months, Satya and I have worked closely together to establish a revised search agreement that allows us to enhance our user experience and innovate more in our search business,” Yahoo Chief Executive Officer, Marissa Mayer said.
“This renewed agreement opens up significant opportunities in our partnership that I’m very excited to explore.”
The new terms update a 10-year agreement struck by former Microsoft CEO Steve Ballmer and former Yahoo CEO Carol Bartz in 2009.
The deal potentially allows Yahoo to make a separate search ads deal Google, which commands 54.5 per cent of the $81.59 billion search market, according to eMarketer.
This could boost Yahoo’s revenues significantly. However, Yahoo may choose to monetise its search traffic using its own ads product, Gemini.
Microsoft and Yahoo together will own 6.5 per cent of the search market globally in 2015, according to eMarketer. Bing will account for 4.2 per cent, while Yahoo will account for 2.3 per cent.