Yahoo! looking for way out of search revenue deal with Microsoft?

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According to reports, Yahoo! is apparently looking for a way to get out of its search revenue deal with Bing, despite the fact it has only recently extending the agreement.

The Wall Street Journal claims sources close to the matter informed it the search engine giant was quietly trying to get out of its partnership with Microsoft, but its attempts so far had failed.

The renewed one year deal, which extended the current one which expired on March 31, took effect on April 1. It marks the first agreement between the two firms since Marissa Mayer took over as Yahoo!'s chief executive back in July last year, although the first deal was actually struck between the pair in 2009, before being renewed again in 2011.

For Yahoo! a break off from Microsoft seems sensible for the firm, as under the deal its Revenue Per Search has actually been worse than when it used its own systems:  Since making the arrangements, Yahoo! has agreed to use Microsoft's technology instead.

The pair initially made the deal to try to generate more income in the face of Google's mammoth share of the search market.

With a vast bulk of people using Google as their main search engine, figures constantly show it averages around the 66-67% mark in the US alone, the Internet giant has been able to draw in a number of firms willing to use it for PPC marketing and SEO purposes over its rivals.

By joining together, the pair hoped to present a more appealing, unified alternative to Google's platforms rather than taking it on individually.

Under the initial deal between the pair, Yahoo! looked to receive more money from ads through a guaranteed Revenue Per Search agreement with Microsoft, however Microsoft has so far fell short on this promise.

If by April 1, 2014, Microsoft is still unable to deliver on its promises, Yahoo! will be able to walk out on the deal according to Searchengineland's Danny Sullivan.

Despite the somewhat shaky relationship however, Yahoo!'s search revenue rose six per cent to $408m in the first quarter of 2013.

News brought to you by ClickThrough – a best practice digital marketing agency.

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