Money Talks: Google, Mozilla Strike New Firefox Search Deal

rated by 0 users
This post has 4 Replies | 2 Followers

Top 10 Contributor
Posts 25,817
Points 1,166,165
Joined: Sep 2007
ForumsAdministrator
News Posted: Wed, Dec 21 2011 11:54 AM
Google was in position to deal a mighty blow to Mozilla and its Firefox browser. With the search agreement between Google and Mozilla expired, all Google had to do was turn its back on Mozilla, and just like that, the browser maker would have lost a ginormous portion of its revenue. In the end, however, money talks, and both sides figured out it was in their respective best interests to hammer out a new search deal, so that's what they did.

In a blog post last night, Mozilla said it "negotiated a significant and mutually beneficial revenue agreement with Google" that will extend their partnership for at least three more years.


"Under this multi-year agreement, Google Search will continue to be the default search provider for hundreds of millions of Firefox users around the world," said Gary Kovacs, CEO, Mozilla.

Mozilla stopped short of outlining specific terms of the agreement, but it's no secret Mozilla relies heavily on Google's contributions. In 2010, Mozilla's revenue was $123 million, and of that, $103 million -- or 84 percent -- came from Google. Based on those figures, you can see why it was so important for Mozilla to hammer out a new search deal.

It was also important for Google, whose Chrome browser is now the No. 2 browser in the world in terms of market share, according to StatCounter. But only by a smidgin. By StatCounter's figures, Chrome and Firefox are neck and neck at around 25 percent each. By not re-upping its search agreement, Google would have given up all the revenue that comes from a 25 percent user base.
  • | Post Points: 65
Top 50 Contributor
Posts 2,865
Points 29,645
Joined: Mar 2011
Location: United States, Connecticut

Glad to hear that they worked out an agreement I did not want to see the fox fade away into the sunset. So much great work has gone into it.

  • | Post Points: 5
Top 100 Contributor
Posts 990
Points 14,250
Joined: Nov 2009
Location: Ontario
Manduh replied on Wed, Dec 21 2011 7:52 PM

This is excellent news, good for them! :)

PCAudioLabs Rok Box MC 7xs - Intel Core i7-2600K - Cooling: PCAL Quiet Operation - Gigabyte Z68 Motherboard - 16GB DDR3-1333 - AMD Radeon HD 5450 - Power Supply: 600 Watts - SRT Drive: Intel 311 SSD (20GB) - Primary Drive: 500GB, 7200RPM, 16MB cache - Audio Drive: 1TB, 7200RPM, 32MB cache - Sample Drive: 2TB, 7200RPM, 64MB cache - OS: Windows 7 Professional x64

  • | Post Points: 5
Top 150 Contributor
Posts 653
Points 5,925
Joined: May 2008
Location: Stockholm
mhenriday replied on Thu, Dec 22 2011 3:32 AM

Good call on the part of the Google leadership ! It was Firefox's success that saved users from the quasi-monopoly that had been enjoyed by Microsoft with its bundled Internet Explorer - the measures taken by the European Commission, i e, levying a large fine for anti-competitive behaviour and forcing MS to include a «browser choice box» on Windows, were good, but came after Firefox had proved its viability - and maintaining the agreement with Mozilla will not only benefit Google commercially by keeping its search engine as the FF default, but also in terms of good will from the many users who appreciate Firefox both for its current usability and for its monopoly-busting history....

Henri

Top 500 Contributor
Posts 123
Points 910
Joined: Oct 2011
Location: Canada

Even though I use chrome, I still like the fox because it saved us from the POS that was IE 6. Can you believe then, Microsoft at that time actually had the nerve to announce that they would halt(or significantly slow) IE development. Firefox changed the game and combined with the rise of Chrome(and its many flavours), IE has had to take notice, support web standards and the newest technologies.

Another case where competition benefited everyone. Long live the Fox.

  • | Post Points: 5
Page 1 of 1 (5 items) | RSS