When huge tech deals are signed, they are always valued in millions and sometimes in billions.
Mozilla Firefox signed a 5-year deal with Yahoo to keep it as their default search engine and the terms end on 2019.
However, Mozilla was not happy with Yahoo because the search engine provider is hardly ahead of the market trends and are now here a direct competitor to Google search which has been ruling the world of many years now. When the newest version of the browser Quantum got released, the company wanted to ensure they provide the best experience for their customers which in other words meant that a better search engine that will get job done quickly and accurately.
Without any big announcement, Mozilla’s lead team confirmed that they are severing ties with Yahoo a year before the actual contracts ended and will make Google the default search application in their product. It doesn’t come as a surprise because if they could retain millions of users and keep them happy, skipping hundreds of millions of dollars in order to make this possible sounds like a fair deal right?
It may not be a viable option in the real world but tech companies don’t hesitate to make such decisions. According to a famous technology blog and a couple of inside sources, it has been confirmed that Mozilla should pay approximately $375 million every year if they choose to end the five-year contract earlier than the actual contract period. The deal was envisioned and signed by Marissa Meyer, the ex-CEO of Yahoo who made a lot of purchases and tried to bring the company up in terms of value but it never worked out.
Based on the piece of information provided by the source, it looks like nearly $400 million should be paid to Yahoo so that they can remove it off their Quantum browser and have Google back doing its job as ever. On the other side of the line, Google reportedly paid billions of dollars to Apple so as to make them the default search engine on their iOS devices. The mass market is something in the United States where Google could never rule because Apple has a much stronger stand in the country and majority of the population still like the iOS devices compared to Android which is why they had to take the expensive route.
Mozilla Firefox is a non-profit organization and a free browser used by millions of users around the globe. Competitors like Opera, Google Chrome are competing hard whereas Firefox continues to make a major share of its revenue through partnership with search engine providers. About $323 million revenue was generated in 2014 through the company’s deal with Google and Mozilla plans to continue the same winning streak as they are not interested in keeping Yahoo on-board one of their best browsers yet!
From a user perspective, all these millions of dollars don’t make any sense or significance to their every day experience. At the end of the day, most users would want to use Google or at least Bing because using Yahoo to search for content and find what they want has become a thing of the past as it doesn’t receive as much updates as Google search engine and definitely not at the top of the game right now.
Mozilla was more than willing to pay $375 million or whatever the deal was to get a one-year head start with Google once again and stay relevant in the game. The user base has significantly improved after Quantum became the default browser which is much faster, lighter and easy on the memory.
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