Yahoo and Mozilla’s legal fight is offering an entertaining reality show to the spectators. The battle kick-started when Mozilla ditched Yahoo for Google as default search engine in its new browser, Firefox Quantum.
Well, the situation took an interesting turn with an onset of a legal battle between the conflicting parties. First of all, Yahoo filed a lawsuit against Firefox on December 1. In response to the move, Firefox filed a counter lawsuit against the company.
Let’s take an overview of what has happened in the battle of browser Vs. search engine.
Background of Yahoo and Firefox Deal
It all begins in 2014 when Yahoo’s then CEO Merissa Mayer, signs a $375 million a year worth deal with Mozilla, for making the website a default search engine till 2019. The deal is said to be Merissa’s landmark achievement along with the hiring of Katie Couric, who also recently ditched $10 million worth job. Spectators would find it an exciting coincidence that anyone who entered into a deal with Merissa is now leaving the company.
In the counter lawsuit, Mozilla has argued that switching off the search engine was in-line with the deal. As per reports, contract obliged search engine to continue the payment of $375 million per year, irrespective of the who runs the company. Further, it also allows Mozilla to terminate the contract if it doesn’t find the search engine acceptable anymore. In both the cases, things are actually in favor of Mozilla.
Verizon’s Acquisition of Yahoo
Another exciting thing is the Verizon’s $4.48 bn worth deal acquisition of Yahoo that took place in June 2017. The deal followed the AOL and Yahoo merger under the new subsidiary name Oath. Former AOL CEO, Tim Armstrong is now heading the Oath. The acquisition that changed the ownership of search engine does not affect its contract with Mozilla. As according to the agreement, the company is still bound to make annual payments.
Why Mozilla Switched to Google
Well, choosing Mozilla for such contract was a smart move for Merissa But, according to the contract’s term company is bound to offer a better customer experience by improving the quality of search engine. According to reports, Mozilla has alleged that Yahoo failed to make any strategic investment in providing a better user’s experience. Hence, it had to consider the option of replacing Yahoo with Google. Well, whatever conclusion the story follows, Yahoo seems to be at the receiving end, at least in the recent episodes; because, it is definite that no one wants to pay $375 million per year without any reason.