Sunnyvale, CA, United States (4E) – Yahoo Inc. is seeking to strike a partnership with reviews provider Yelp Inc. to boost its search results and attract users, according to a source familiar with the deal, which Chief Executive Marissa Mayer discussed at an employee meeting on Friday.
Under the agreement, Yelp will incorporate its listings and reviews of local businesses into Yahoo’s search engine results, according to a person who was present in the meeting. The Sunnyvale, California-based Yahoo will also unveil a new feature in the coming weeks, the source said.
Ms. Mayer is looking to add content and features to draw and retain users as the company seeks to narrow the gap between them and rivals Google Inc. and Microsoft Corp. The internet portal’s share of the search market has dropped by about a half since 2008. Its 11 percent share in December, trails that of Google’s 67 percent and Microsoft’s 18 percent, according to data compiled by ComScore Inc.
Yelp has similar content deals with Apple and Microsoft, including reviews, photos on its mobile mapping software and local business listings.
Excluding revenue passed to partner sites, Yahoo’s first-quarter sales will be at a range of $1.06bn to $1.1bn, according to the company’s statement last month. Yelp predicts full-year net revenue of $353mn to $358mn, a growth of around 53 percent.