Yahoo and Facebook Decide to 'Play Nice'

By

Facebook and Yahoo, up until recently bitter enemies over patent disputes, have agreed to try to get along. To cement their new accord, the two companies have formed a partnership, while dropping their lawsuits, agreeing to license their patents to each other and form an advertising and content-sharing alliance. Observers say the deal, which involves no cash exchange, could be lucrative for both of them.

According to reports, the new advertising alliance could help Yahoo recover some of the revenue that it has been losing as marketers have been flocking to a “more engaged” social media audience on Facebook. Facebook, in turn, gains the opportunity to show the ads tailored to fit the individual interests of its 900 million users in other heavily trafficked areas besides its own website.

The deal follows the departure of Yahoo's short-lived and unpopular Scott Thompson, fired by Yahoo two months ago following accusations against him that he had embellished his biography, adding a major in computer science that he had never earned. Thompson, who was responsible for laying off 14,000 Yahoo employees, or 14 percent of the company's workforce, was responsible for initiating the patent lawsuit against Facebook. The complaint alleged that Facebook infringed on 10 Yahoo patents covering Internet advertising, privacy controls and social networks. Yahoo Inc. later added two more patents to the lawsuit. The lawsuit was a public relations disaster for Yahoo, and many analysts and business columnist viewed it as “a financial shakedown by a desperate company whose well of innovation had run dry,” according to the AP.

In response to the suits, Facebook counter-sued. After the departure of Thompson, the Yahoo's interim CEO, Ross Levinsohn quickly began working on a deal with Facebook's chief operating officer, Sheryl Sandberg, recognizing more potential in cooperation than enmity. On Friday, the two companies issued statements praising each other for working toward an agreement.






Edited by Brooke Neuman
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Shabodi Accelerates Adoption of Network-Aware Applications with CAMARA API Enterprise Reference Implementation

By: Special Guest    2/16/2024

Shabodi, an Application Enablement Platform (AEP) provider unleashing advanced network capabilities in LTE, 5G, 6G, and Wi-Fi 6, announced they have l…

Read More

How Much Does Endpoint Protection Cost? Comparing 3 Popular Solutions

By: Contributing Writer    2/2/2024

Endpoint protection, also known as endpoint security, is a cybersecurity approach focused on defending computers, mobile devices, servers, and other e…

Read More

What Is Databricks? Simplifying Your Data Transformation

By: Contributing Writer    2/2/2024

Databricks is an innovative data analytics platform designed to simplify the process of building big data and artificial intelligence (AI) solutions. …

Read More

What Is Blue/Green deployment?

By: Contributing Writer    1/17/2024

Blue/green deployment is a software release management strategy that aims to reduce downtime and risk by running two identical production environments…

Read More

The Threat of Lateral Movement and 5 Ways to Prevent It

By: Contributing Writer    1/17/2024

Lateral movement is a term used in cybersecurity to describe the techniques that cyber attackers use to progressively move through a network in search…

Read More