Yahoo Wants Out Of Its Bing Deal & Move To Google & Why That’s Bad News For Domainers

Posted on the 09 May 2013 by Worldwide @thedomains

According several sources, Yahoo would like to get out of its deal with Microsoft and let Google Monetize their search results.

Yahoo entered into a 10 year search deal in 2010 and uses Bing search engine to power search results on Yahoo sites.

Microsoft just extended the revenue guarantee associated with the partnership, the second such extension since the 10-year pact took effect in 2010.

Under the deal, Microsoft gets 12% of the revenue Yahoo generates from search ads that appear next to search results on its websites.

Microsoft guarantees a certain level of revenue

In 2015, the midway point of the 10-year agreement, either party can potentially opt out of the Agreement.

The question for domainers is what happens to parking revenue if Yahoo hands off all of its traffic to Google leaving Google as the only upstream PPC provider?

However parking has declined, there are substantial money being generated by parking which continues to fund domain acquisitions and pays for registration and renewal fees.

One can assume without any competition Google will squeeze the domain channel even harder sucking out additional profit.

We may find out in a couple of years.…