Considering how Yahoo’s deal with Microsoft in the area of Search is showing no signs of improvement, in terms of performance, the company has recently revealed that they are currently working on a number of new search products.
If the company is serious and not just experimenting or to gain leverage, thanks to its upcoming discussion with Microsoft regarding per-search revenue, they could create a product that would replace almost one-thirds of its current revenue.
Just in the third quarter of last year, Yahoo earned almost 31 percent of its revenue from the deal it has made with Microsoft.
Without a doubt, the Bing search deal that it has with Microsoft is growing in importance because revenue from the last nine months indicated that almost 30 percent came from this very deal itself.
In the nine months ending before the 2012 third quarter, the company made 24 percent of its revenue while its third quarter saw that figure jump to 27 percent.
So, there’s been steady growth that has been registered despite the company being in times where it continues to lose search market share. Without a doubt, the drop in revenue from its other products are going down much faster than the revenue it is generating in this deal with Microsoft.
In other words, the deal is creating revenue stability while the company continues to move through a time of transition.
And with Yahoo having plans to replace this deal with their own search product, one wonders whether this is foolhardiness or just them demonstrating boldness.