Yahoo! Inc. and Microsoft Corp. have updated their search agreement to make it easier for either company to exit the alliance.
The clause is part of a new deal that was reached following recent negotiations, and lets Yahoo or Microsoft terminate the agreement with written notice beginning later this year, according to a filing Monday. It also includes a transition period. Under the previous agreement, Yahoo could break off the deal, based on metrics around how much revenue it was getting for search ads.
Yahoo, which struck a 10-year search-and-advertising deal with Microsoft in 2009, recently renegotiated the terms as Chief Executive Officer Marissa Mayer seeks new ways to drive revenue growth amid a turnaround effort. Under the new agreement, which was unveiled last week, Yahoo no longer will have to use Microsoft to serve all desktop-search generated ads.
“Our global partnership with Yahoo has benefited our shared customers over the past five years and I look forward to building on what we’ve already accomplished together,” Microsoft CEO Satya Nadella said in a statement on April 16, when the new agreement was announced.