Yahoo has struck a deal with Google over search ads in a bid to boost revenues following the former's freshly announced lukewarm fiscal results for Q3.
Yahoo's third quarter results saw the firm's GAAP revenue total $1.23 billion (£800 million). While that was up 7% year-on-year, the figure was slightly below analyst expectations and therefore disappointing news for investors.
Greater flexibility
In a press statement, Yahoo announced the deal saying: "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."
So this shouldn't affect the deal with Redmond in any way.
Ken Goldman, CFO of Yahoo, said of the overall results: "We are pleased with our financial flexibility and strong balance sheet, with a cash and marketable securities position of $6.8 billion at the end of Q3.
"This quarter we've reduced spending in areas such as workforce, facilities and discretionary expenses, and in our ongoing efforts to control expenses, we'll continue to focus our headcount on growth initiatives."