After a rocky relationship, finally Yahoo! Inc. (NASDAQ:YHOO) and Microsoft Corporation (NASDAQ:MSFT) are holding talks to re-negotiate a 10-year agreement. The agreement is about a search engine and the deadline for the talks has been prolonged by 30 days.
The search partnership was initiated in 2010 allowed the two firms to make changes or bring the argument to a total end after five years. Terms of the agreement dictate that the firm has the two firms have one month to change various things.
The first requirement for the two companies is changing the deadline to a two month period beginning from February 23rd. This is in accordance with a filing with the U.S. Securities Exchange. Yahoo! Inc. (NASDAQ:YHOO) announced that they hold Microsoft with high regards and their discussions and plans for the future would continue though it was not clear whether between the CEOs of both companies.
The notice for extension of talks came in proximity to the passing ofMicrosoft CEO, Satya Nadella’s mother, which is part of the request for extension.
The 10-year partnership was initiated in 2010 by Steve Balmer, who was the CEO of Microsoft at the time, and Carol Bartz who is the former CEO of Yahoo. The two firms hoped that their combined efforts would amount to something that could give Google Inc. (NASDAQ:GOOGL) some competitive edge and reduce Google’s huge command as a search engine.
Unfortunately, the talks have not yielded much fruits. Google still holds a bigger percentage of the search market that both Yahoo and Microsoft combined. The ensuing feud between Yahoo and Microsoft resorted into a court settlement at one point. This was in 2002 after Mayer joining Yahoo. He pushed for Yahoo to avoid using Microsoft’s search algorithm. The court ruling suggested that Yahoo should use Microsoft’s search technology. The feud between Microsoft Corporation (NASDAQ:MSFT) and Yahoo has somehow inadvertently given Google a competitive edge over the two companies.