Yahoo and Google: There used to be a time, many years ago, when Yahoo was competitive with Google Inc (NASDAQ:GOOG). However, this is not true in today’s day and age. But despite the intense competition between the two search engine companies, it has not stopped them from partnering in the past. And it appears that this is once again going to happen in the future.
According to a report by USA Today, Yahoo is turning to Google Inc (NASDAQ:GOOG) to help accelerate revenue growth.
The question is: what type of assistance is Yahoo looking for?
Here is what the article had to say:
“As part of a nonexclusive arrangement announced Wednesday, Yahoo’s website will begin drawing upon Google’s massive online advertising network to show marketing messages related to the content that’s being perused.”
As you know, Google has won over a large portion of this market as it currently provides the same service for thousands upon thousands of websites. In fact, it is the company’s ad network that has made it one of the most valuable companies on the face of the earth.
Despite the fact that Yahoo may not be on par with Google Inc (NASDAQ:GOOG), you would think the company could figure things out on its own instead of turning to its chief rival. However, this does not appear to be the case.
The article goes on to add the following:
“Yahoo has been struggling to attract more advertisers in recent years, even though more marketing budgets have been shifting to the Internet. The company’s revenue had fallen in three consecutive years before registering a small gain last year. Yahoo CEO Marissa Mayer, a longtime Google executive before being lured away nearly seven months ago, has pledged to produce more impressive growth in future years.”
As you can see from this information, one of the main reasons for seeking a partnership may be Yahoo CEO Marissa Mayer. She previously worked at Google, so Mayer knows a thing or two about what it takes to succeed in this area.
Here is one last piece from the article to sum things up:
“Analysts have been predicting that Mayer’s old ties with Google might eventually lead to a closer relationship with Yahoo.”
“Yahoo’s chief operating officer, Henrique De Castro, is also a former Google executive.”
What do you think about this relationship between Google Inc (NASDAQ:GOOG) and Yahoo?
Check back here for more updates on Yahoo and Google.
DISCLOSURE: I have no positions in any stock mentioned.
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