Following its disappointing Q3 earnings report today, Yahoo has announced that it has inked a three-year search deal with Google that will see the latter providing both ads and some search results through Yahoo's own search offering. From the regulatory filing detailing the deal:
On October 19, 2015, Yahoo! Inc., a Delaware corporation ("Yahoo"), and Google Inc., a Delaware corporation ("Google"), entered into a Google Services Agreement (the "Services Agreement"). The Services Agreement is effective as of October 1, 2015 and expires on December 31, 2018. Pursuant to the Services Agreement, Google will provide Yahoo with search advertisements through Google's AdSense for Search service ("AFS"), web algorithmic search services through Google's Websearch Service, and image search services. The results provided by Google for these services will be available to Yahoo for display on both desktop and mobile platforms.
Under the Services Agreement, Yahoo has discretion to select which search queries to send to Google and is not obligated to send any minimum number of search queries. The Services Agreement is non-exclusive and expressly permits Yahoo to use any other search advertising services, including its own service, the services of Microsoft Corporation or other third parties.
What makes this more interesting is that Yahoo already has a deal in place with Microsoft to use its Bing offerings in its search results as well. The deal with Microsoft was originally an exclusive one, but it was renegotiated earlier this year to do away with the exclusivity clause. With this latest agreement with Google, it looks like both it and Microsoft will be providing a portion of the search results and ads that appear through Yahoo searches.