The odd couple of search -- Microsoft and Yahoo -- have tweaked their partnership to give Yahoo more wiggle room.
The amended agreement, signed by Microsoft CEO Satya Nadella and Yahoo CEO Marissa Mayer, has two main elements. First up, Yahoo will now be allowed to have more "flexibility to enhance the search experience" across mobile and desktop devices. In addition, the companies have modified their handling of ad sales, with Microsoft now exclusively handling the Bing ads on Yahoo Search and Yahoo continuing to sell ads through its own Gemini ads platform.
"We firmly believe that search is still in its infancy - and this partnership marks the next chapter in our exploration of how to make search truly great," Mayer said in a statement Thursday.
The updated to the search deal comes six years into a 10-year pact between the companies. In 2009, two former CEOs -- Microsoft's Steve Ballmer and Yahoo's Carol Bartz -- signed a deal that would see Microsoft's Bing platform power Yahoo search. In return, Yahoo would be the exclusive sales force for ads and would receive a significant sum each year to be the brains behind Yahoo search.
At the time, both companies said that the deal represented a "significant opportunity" and some analysts suggested it was an attempt on Microsoft's part to get closer to Google on search usage and drive more revenue through online advertising.
The new deal between the companies comes at a crucial time for both firms. Mayer, who came to Yahoo from search giant Google, is in the process of transforming the company into one that's friendlier to mobile devices and more capable of generating revenue off those products. Mayer is also keenly aware of Yahoo's slumping position in the online world, which has driven her to make dozens of major acquisitions over the years.
Nadella, meanwhile, has refocused Microsoft on services and mobile, and becoming platform-agnostic with its many platforms, including Office. Under Nadella's leadership, Microsoft has attempted to make clear that it no longer views itself as a software company, but rather a cloud services and mobile firm that provides software.
That was made abundantly clear earlier this year when Microsoft announced that it would offerWindows 10, its upcoming operating system, for free. Microsoft has historically sold new Windows versions for hundreds of dollars to drive revenue and profits. Nadella sees his company's future in other areas.
Details on the new Yahoo-Microsoft agreement are being kept close to the vest. In a statement on her company's blog on Thursday, Mayer would only say that the deal "opens up significant opportunities in our partnership, enabling both partners to improve the search experience, create value for advertisers, and establish ongoing stability for partners."
That said, Yahoo did note that the original structure of the companies' deal, including how Microsoft would handle search and the revenue-sharing agreement between the companies -- "remains unchanged with today's updates."
Neither Microsoft nor Yahoo immediately responded to a request for comment.
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