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Will Yahoo! Inc. (YHOO)’s Deal With Mozilla Foundations Put Pressure On Google Inc (GOOGL)?

Yahoo! Inc. (NASDAQ:YHOO) is all set to replace Google Inc (NASDAQ:GOOGL) as default search engine on Mozilla Foundations Firefox web browser. Before the introduction of Chrome browser by Google, Firefox was the most widely used browser for various reasons. Introduction of Chrome has widened the crack between Mozilla Foundations and Google Inc (NASDAQ:GOOGL), which gave an opening for Yahoo! Inc. (NASDAQ:YHOO) to grab the opportunity and gain some foothold in its traditional business. J.R. deBart reported on ‘TheStreet’ about this.


deBart reported that Yahoo! Inc. (NASDAQ:YHOO) will supplant Google Inc (NASDAQ:GOOGL)’s search engine on Firefox web browser in US. He added that this indicates Yahoo’s intention to gain some lost grounds in the internet ad market. Previously Google Inc (NASDAQ:GOOGL) had a 10-year old deal. Google’s Chrome browser introduction has created a lot of tensions between Google and Mozilla since 2008, which was the main reason behind the new deal to Yahoo.

“The five-year alliance announced Wednesday will end a decade-old partnership in the U.S. between Google Inc. and the Mozilla Foundation, which oversees the Firefox browser. The tensions between Google and Mozilla had been rising since Google’s introduction of the Chrome browser in 2008 began to undercut Firefox. Google’s current contract with Mozilla expires at the end of this month, opening an opportunity for Yahoo to pounce,” deBart reported.

He also added that Chrome has surpassed Firefox as the most widely used browser, but he still feels that Firefox has its own loyal followers. He mentioned that the Firefox web browser users make more than 100 billion worldwide search requests in a year.

Can Yahoo! Inc. (NASDAQ:YHOO) pounce on this opportunity and gain some lost shares in the internet advertisement market or will Google prevail? It all depends on how Yahoo uses this opportunity and maximizes the benefit. Also can this new deal between Yahoo and Mozilla affect Google in any way? Many feel that Google will not see a huge downside due to this.

Disclosure: None

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