Yahoo has signed a deal with Google to provide search ads. The deal builds on an existing search partnership with Microsoft under which Yahoo gets a percentage of revenue from ads displayed on its sites.
The deal that Yahoo announced in its third quarter earnings is a three-year, non-exclusive agreement effective October 1st and lasting until the end of 2018. As per the agreement, Google will provide Yahoo with search ads, algorithmic search, and image search services for both desktop and mobile. The deal is non-exclusive, which means that Yahoo can still use Microsoft’s Bing or its own in-house technology to provide search ads.
“In October, the Company reached an agreement with Google that provides Yahoo with additional flexibility to choose among suppliers of search results and ads. Google’s offerings complement the search services provided by Microsoft, which remains a strong partner, as well as Yahoo’s own search technologies and ad products.”
reads the SEC filing from Yahoo.
Yahoo said it expected fourth-quarter revenue of $1.16 billion–$1.20 billion, well below the average analyst estimate of $1.33 billion.