It looks like nothing and nobody from within the company will be enough to save Yahoo, as evidenced by yet another disappointing earnings report, which is why it looks like Google is going to have to swoop in and save the day. The two companies have reformed their search partnership that was originally dismantled due to anti-trust concerns, which means Google will now provide Yahoo with some of its search results and search ads in exchange for paying Yahoo a piece of the revenues.
Yahoo reported another set of disappointing results on Tuesday as the tech company inked a deal with Google over search ads. In another blow to boss Marissa Mayer’s efforts to turn around the tech company, Yahoo reported an 6.4% increase in revenues for the three months ending in September, below analysts’ forecasts. The company also announced a deal with Google to provide web search results and search ads for an unspecified number of Yahoo user queries on both mobile and desktop. Google will pay Yahoo a percentage of revenues. The agreement will be reviewed by the Justice Department and comes after Yahoo amended the terms of its search partnership with Microsoft. Yahoo said that it cut spending on its workforce and facilities during the quarter. “As we move into 2016, we will work to narrow our strategy, focusing on fewer products with higher quality to achieve improved growth and profitability,” Mayer said in a statement.