Dive Brief:
- Yahoo said it signed a new search advertising deal with Google on Tuesday, Reuters reported.
- The deal builds on an existing search partnership under which Yahoo gets a percentage of revenue from ads displayed on its sites.
- Yahoo also reported revenue and profits fell short of market estimates.
Dive Insight:
Yahoo has been struggling to boost revenue from ad sales due to competition from Google and Facebook, among others.
Overall, Yahoo said it expected fourth-quarter revenue of between $1.16 billion and $1.20 billion, well below the average analyst estimate of $1.33 billion.
"We are also experiencing continued revenue headwinds in our core (advertising) business, especially in the legacy portions," said CEO Marissa Mayer.
A bit of good news came from Yahoo's emerging businesses, known as Mavens (mobile, video, native and social advertising). Revenue in that area rose 43% to $422 million in the quarter.
