Yahoo CEO Marissa Mayer wants to save Google a billion dollars

“According to published reports, Apple gets approximately one billion dollars a year from Google to be the default iOS search engine for Safari. In turn, Google probably gets more than that in payment for targeted ad clicks or taps from an iOS device,” Gene Steinberg writes for The Tech Night Owl. “All this is happening while Apple is fighting the largest licensee of Google’s Android OS, Samsung, in the courts over intellectual property disputes.”

“Google isn’t the only search engine available on iOS. You can choose Microsoft Bing, or Yahoo if you prefer. But since most users don’t change default settings, Google continues to get the lion’s share of the action, and that’s also true on OS X,” Steinberg writes.

Yahoo CEO Marissa Mayer<br>(photo by Brigitte Lacombe)
Yahoo CEO Marissa Mayer
(photo by Brigitte Lacombe)
“Despite that, Apple has done things to reduce the ad payments to Google, first by giving up on Google Maps starting in iOS 6, although Google’s app is still available for download, and by moving to Bing for some Siri-related searches. Yahoo already provides the data for stocks and weather on iOS, but they want the whole enchilada.”

Steinberg writes, “According to published reports, Yahoo CEO Marissa Mayer is hot after getting that pole position on iOS.”

Read more in the full article here.

Related article:
Marissa Mayer working to get Apple to dump Google, default to Yahoo for mobile search – April 16, 2014

21 Comments

  1. I don’t care. Yahoo in the past has tried to slavishly copy Apple, with their most blatant example being Yahoo Widgets. Not to mention that they have attempted to buy Tizen, and re-brand it as Yahoo Phone. Oh…and wasn’t Melissa a Google employee at one time? Once a thief, always a thief…

    1. Wayne, you’ve made these claims in the past. You didn’t back them up then. Will you now?

      “They attempted to buy Tizen”

      Do you have a source for “attempted to buy Tizen”? I’d think that would be pretty hard to do considering it’s an open source project within the Linux Foundation with Samsung and Intel on the steering committee, and it’s sole purpose is to create an alternative to Android where it’s directed by association members (12 of them) as opposed to being ruled by one company (like Android essentially is by Google). Also, Yahoo doesn’t have a hardware platform to base Tizen on, nor does it have any hardware engineers to build one.

      “Yahoo in the past has tried to slavishly copy Apple, with their most blatant example being Yahoo Widgets.”

      Yahoo widgets came from the acquisition of Konfabulator which had widgets on OS X and later on Windows before Apple introduced Dashboard widgets. I’m not saying that Apple copied Konfabulator either… the whole “copying” thing is overplayed. Both technologies came out after years of development and introduction of other technologies by other developers that allowed them to build upon (XML, Javascript, CSS, HTML, etc…)

      Calling Marissa Meyer a thief because she worked at Google is pretty low in my opinion. I’m not sure what the point of that was.

    1. Gene is using a motor sports analogy, likening the leading spot in a race to the default search engine in iOS. Gene can garble metaphors with the best of them, even throwing in an enchilada, presumably one as hot as he says Marissa is.

  2. Android phones default to google. MS phones default to bing as do blackberry phones. iPhones default to google and have since first iphone. Nobody defaults to Yahoo so this kind of partnership could make sense. Currently yahoo uses bing algorithm but they could build their own (again) and become a player through strategic partnership with Apple. They would own the high end of mobile search if Apple were to change its default to them and Apple would further distance itself (and deny revenue) from Google. Yahoo wins, Apple wins, Google loses.

  3. Speaking as a consumer, Bing and Yahoo have a ways to go to beat Google’s search algorithms. Those algorithms made Google what it is today, which it has monetized with Ads. I personally won’t be switching search engines until a competitor can find things on the Internet for me as well as Google.

    Their ethics may be slipping, but their search skills have not.

    1. amen to that, Marissa and co have very badly destroyed FlickR and forcefully pushed a new layout on us that many people don’t like. There is a protest going on that started tomorrow
      BETA BLACKOUT

  4. I’d like to see Apple buy Yahoo.

    Here’s the thing. They could buy Yahoo, shut it down, and turn a profit of $13 Billion. See:
    http://tech.slashdot.org/story/14/04/18/1340206/investors-value-yahoos-core-business-at-less-than-0

    Yahoo owns stakes Yahoo Japan (valued at $9 Billion) and Alibaba (a Chinese company valued at $40 Billion). Apple could buy Yahoo, sell these assets (Alibaba has to be sold anyway), and come out about $13 Billion ahead (minus whatever premium there would be on the takeover).

    But wait, there’s more…

    Apple has a problem with foreign cash, but not foreign cash in China since that’s a country they import from. Also the tax hit from Japan is much less than other countries, so there’s significant profit to be made by shifting the money and legally avoiding taxes.

    Of course they shouldn’t shut down Yahoo, but that’s the absurdity of how good of a buy it is right now. Apple would get their own search (possibly continued to be powered by Microsoft, possibly returned to being powered by what was Inktomi). Apple gets some pretty kick ass iOS developers (and other engineers), and picks up other assets that could be brought into the fold or sold off (Tumblr, Flickr, etc…).

    It would vastly extend the reach of iAds, and I would think Apple could do some really cool stuff with integrating Yahoo’s vast content delivery on iOS and OS X.

    Come on… do something exciting! Wouldn’t we all like to see Marissa Meyer deliver a WWDC keynote?

    1. And why does Apple have to buy Yahoo to do really cool stuff with them. Apple has been partnering with many different companies, and I’d be fine with Apple mapping out a plan to partner with Yahoo if Yahoo can build specific products. Of course there can be cooperation on the development of those products also. Tim Cook and Co have a big enough plate before them, they don’t have to add Yahoo too. Let Yahoo go away and get it right.

      1. Read everything anything I wrote after the “I’d like to see Apple buy Yahoo” line.

        Stuff happens to companies with a -$13Billion core business valuation.

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