Firefox's Default Search Engine Position Costing $300 Million
December 23, 2011

Firefox’s Default Search Engine Position Costing $300 Million

Google is paying Mozilla $300 million for it to remain the default search engine on the Firefox Web browser.

The three-year agreement stretches beyond the previous agreement due to stiff competition provided by both Yahoo and Microsoft.

The previous agreement expired in November 2011 and was originally signed in 2008.

Microsoft's Bing search engine was provided as an option at the release of Firefox 4 earlier this year, and in October it was the default search option.

Microsoft was the main rival in the bid, attempting to aggressively take over the default spot on one of the world's most popular Web browsers.

Yahoo also tried to beat out Google's bid, even though its searches are powered by Microsoft's Bing.  However, in the long run, the deal was shown to be too costly for the company.

Google contributed 84 percent of Mozilla's $123 million in revenue in 2010, which was 18 percent higher than 2009.

“We´re pleased to announce that we have negotiated a significant and mutually beneficial revenue agreement with Google," Mozilla said at the announcement of the deal. "This new agreement extends our long term search relationship with Google for at least three additional years."

Google's Senior Vice President of Search, Alan Eustace said in a statement following the announcement: “Mozilla has been a valuable partner to Google over the years and we look forward to continuing this great partnership in the years to come.”


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