Google to pay Mozilla $300M yearly in new search deal, says report
Mozilla likely leveraged competition between Google and Microsoft to strike it rich
Computerworld - Google promised to pay Mozilla almost $300 million annually to keep its search engine as the default in Firefox, according to a report today on AllThingsD, a blog operated by the publisher of the Wall Street Journal.
Google and Mozilla jointly announced Tuesday that they had struck a new deal to keep Google as Firefox's default search engine, and on the browser's home page.
At the time, Mozilla said only that it had "negotiated a significant and mutually beneficial revenue agreement with Google" which would last at least three years. Mozilla and Google both declined to provide additional information about the new pact, citing confidentiality requirements.
Today, Kara Swisher, the co-executive editor of AllThingsD, said unnamed sources told her that under the agreement, Google will pay slightly less than $300 million per year to Mozilla.
Swisher also said that the price had been pushed upward by bidding from both Microsoft, which operates the Bing search site, and Yahoo.
According to metrics company comScore, Bing and Yahoo were tied in November for second place, each with a 15% share of the search market. Google controlled a still-dominant 65% share.
If Swisher's sources are on target, the $300 million would be nearly triple what Google paid out to Mozilla in 2010, the last year for which the latter has released financial information.
In 2010, Google's payment accounted for 84% of Mozilla's total revenues, or approximately $103 million. In 2009, Google forked over about $89 million, or 86% of Mozilla's income, to have Firefox's default search spot.
Total payments to Mozilla by Google during the years 2008-2010 were about $260 million, or $40 million less than the open-source maker of Firefox would receive in one year under the alleged new deal.
Mozilla and Google today declined to comment on the AllThingsD report or to discuss specifics of the new contract.
But one analyst believed that the $300 million figure was feasible.
"Yes, $300 million is a big sum, but it does highlight what is at stake," said Al Hilwa, an analyst with IDC, referring to search. "The sum shows that there is competition which Mozilla no doubt was able to harness in this deal."
There was at least one sign that Mozilla may have been playing Microsoft and Google against each other: . In October, Mozilla launched a customized edition of Firefox, dubbed "Firefox with Bing," that puts Bing search in the default search position.
If Bing had swung a deal with Mozilla it would have been a coup for Microsoft's still-struggling search engine. But it would also have been in line with Microsoft's expressed plan to put Bing on the map.
- Workarounds to purge search bar from Firefox's new tab page are available
- Mozilla ships Firefox 31, adds search to new tab page
- Microsoft's IE steps back from the brink of irrelevance
- Firefox falters, falls to record low in overall browser share
- Firefox risks user backlash by adding search box to new tab page
- Google unseats Microsoft as the U.S. browser powerhouse
- Safari, Chrome push to mask URLs
- Chrome on Windows champs at the 64-bit
- Google pulls trigger, cripples some Chrome add-ons
- Microsoft shoots to shorten Internet Explorer's long tail
- The Business Value of Continuous Delivery Download this whitepaper to learn more about the business value of Continuous Delivery and see why it could be a game changer for...
- Ten Factors Shaping the Future of Application Delivery Download this research report conducted by Enterprise Management Associates (EMA) to learn how those that are seeking to accelerate application delivery are leveraging...
- HTTP Status Code Cheat Sheet Look at the Graph, Find the Code and Boom - You're Solving Problems. Identifying and understanding common HTTP status codes can go a...
- Architects lead the next generation of data-driven applications Read this whitepaper to find out how application architects can quickly and confidently deliver long-lasting applications that minimize cost, complexity, and risk while...
- NSS Labs & Cisco Present: Evaluating Leading Breach Detection Systems Today's constantly evolving advanced malware and APTs can evade point-in-time defenses to penetrate networks. Security professionals must evolve their strategy in lockstep to...
- Will the Real Endpoint Threat Detection and Response Please Stand Up? This webinar explores new technologies & process for protecting endpoints from advanced attackers as well as the innovations that are pushing the envelope... All Desktop Apps White Papers | Webcasts