American tech company Yahoo released their third quarter results for the 2015 year, on Oct. 20, 2015. The report highlighted key areas where the company could improve, while also showcasing the company’s strong assets and brand recognition. “Our Q3 results were largely within our forecasted expectations—our GAAP [Generally Accepted Accounting Principles] revenue grew seven per cent year-over-year and our Mavens revenue grew 43 per cent,” said Marissa Meyer, CEO of Yahoo, in the Oct. 20 report. “In addition to sharpening focus within core business growth, our top priority is the planned spinoff of Aabaco Holdings. This is an important moment for the Company, and we continue to strive to complete the spin as quickly as we can.”
The report also highlighted the nature of the agreement reached between Yahoo and their primary competitor, Google. According to the Oct. 20 report, in October 2015, Yahoo “reached an agreement with Google that provides Yahoo with additional flexibility to choose among supplies of search results and ads.”
By partnering with Google, Yahoo users can also access results distributed by Google. As a result, Yahoo searches cover a more comprehensive list of categories and sources. The report discloses that Yahoo has a similar deal in place with Microsoft.
“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,” explained a section from the report’s business highlights.
According to an article published by The Verge, Yahoo’s deal with Microsoft stands for 10 years, and was agreed upon in 2010. As of April 2015, Yahoo and Microsoft added a termination clause in their original deal, allowing either company to walk away from the agreement, provided that the departing party gives four months’ notice.
“Pursuant to the amendment, on or after Oct. 1, 2015, either Yahoo or Microsoft may terminate the search agreement by delivering a written notice of termination to the other party,” explained an April 15, 2015 SEC filing. “The search agreement will remain in effect for four months from the date of the termination notice to provide for a transition period, however.” In regards to Yahoo’s advertising goals, the report revealed that Yahoo unified all of their advertising technology under the BrightRoll brand, introducing BrightRoll Demand-Side Platform for “programmatic buying of video, display, and native advertising that leverages exclusive access to Yahoo data, and the BrightRoll Exchange, which connects buyers and sellers of high-quality video and display inventory through integration with 100 DSPs and thousands of sites and mobile apps via Real-Time Bidding, private marketplaces, and programmatic direct.”
As of Oct 27, 2015, Yahoo! Inc. stock (YHOO) stands at US$34.48 per share.