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In a latest development, Yahoo Inc and Microsoft Corp have agreed to extend by 30 days the deadline to re-negotiate a ten year search deal. The development comes as the two internet companies attempt to revamp a thorny partnership crafted by former chief executives.
It may be mentioned, that the search partnership, which took effect in 2010, allowed the companies to negotiate changes or to terminate the arrangement entirely after five years. As per the deal, the companies had 30 days to make changes following February 23.
The filing with the US Securities and Exchange Commission says, Yahoo and Microsoft mutually agreed to extend that deadline to a 60-day period following February 23.
Yahoo said in a statement that the company values it partnership with Microsoft and continue discussions about plans for the future.
Microsoft, however, declined to comment.
It was not immediately clear if the extension signaled progress or lack of consensus between Yahoo CEO Marissa Mayer and Microsoft CEO Satya Nadella.
The announcement to extend the talks comes a few days after Nadella’s mother passed away in Hyderabad, India.
As it is known, that Yahoo and Microsoft began a 10-year search partnership in 2010, in a deal that was crafted by former Microsoft CEO Steve Ballmer and former Yahoo CEO Carol Bartz. The two companies hoped their combined efforts could mount a more competitive challenge to Google Inc, the world’s No. 1 search engine.
The partnership has, however, not lived up to expectations. The search giant, Google still controls roughly two-thirds of the US search market, while Microsoft and Yahoo’s combined share of the market is essentially unchanged at roughly 30%.
Yahoo’s Mayer, who joined Yahoo in 2012 and who has been critical of the deal in the past, tried to hold off on adopting Microsoft search technology in certain markets in 2013. A court ruled at the time that Yahoo must use Microsoft’s search technology.