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Yahoo, Microsoft search deal is not working
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Old 13th February 2013, 13:23   #1
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Default Yahoo, Microsoft search deal is not working

Yahoo chief exec Marissa Mayer said the company's search partnership with Microsoft is not delivering the market share gains or the revenue boost that it should.

Yahoo and Vole signed a 10-year search partnership in 2010, hoping their combined efforts could mount a more competitive challenge, but Mayer told shareholders that the partnership has not lived up to expectations.

According to Reuters, Mayer said that one of the reasons that Yahoo entered the alliance was to collectively grow share. However, what appears to have happened is that Microsoft and Yahoo ended up trading share with each other.

Microsoft had 16.3 percent share and Yahoo had 12.2 percent share in December, a reversal of two years earlier when Yahoo's US search share was 16 percent and Microsoft had 12 percent share.

That does not mean that she wants out of the partnership. Mayer said that there needed to be improvements to see money flow between the two better.

Mayer said that Yahoo knew it could work because other competitors in the space do it rather well.

Meanwhile, Mayer said she planned to cut a sprawling lineup of mobile apps and reiterated her focus on enticing consumers to spend more time on Yahoo's online properties, in order to display more money-making ads.

She said that Yahoo's biggest problem is impressions and if the outfit can grow impressions, growth will happen.

We think we understand what she means. A bad impression can really stuff up an organisation. We had an editor who did a terrible Groucho Marx and we just did not want to come to work.
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