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Yahoo in the Race to Become Safari's Default Search Engine - Analyst Blog

Tech giants Yahoo Inc. ( YHOO ) and Microsoft Corporation ( MSFT ) are battling to become the default search engine for Apple's ( AAPL ) Safari as reported by The Information.

Per the reports, Google's ( GOOGL ) contract as the default search provider for Safari will expire next year. Therefore, rivals Yahoo and Microsoft are in talks with Apple in the hope of becoming the default search engine for Safari after the expiration of Google's contract.

The rumors surfaced after Yahoo replaced Google as the default search engine for the Firefox web browser. Google had been the default search engine for Firefox since 2004. Microsoft powers Yahoo's search technology as part of a 10-year agreement Yahoo signed in 2009.

Currently, Yahoo only provides Apple with stock and sports information, while Microsoft offers Bing search results inside Siri. Becoming Safari's default search engine would be profitable for Yahoo, as the browser is a core app on Mac and iOS devices.

Google is the most popular global search option. In order to compete effectively, Yahoo has been planning to revamp the interface for its search tool. The deal can be a much bigger win for Yahoo as it will ramp up its search business, search engine market share and advertising business, thereby boosting its revenues.

The competitive landscape has changed a lot in the last few years and Google cannot afford to miss any opportunity to maintain its lead in the search market with competitors like Yahoo and Microsoft doing their best to pick up market share. Google Maps and YouTube are no longer the default apps on iPhones and iPads. Apple has also replaced Google on Siri with Bing.

Apple has been gradually removing Google services as default options from its iOS platform in order to reduce its dependence on the competitor. Therefore, it wouldn't be surprising if Apple shifts to a non-Google search engine default.

Yahoo shares carry a Zacks Rank# 3 (Hold), while Google shares have a Zacks Rank #4 (Sell).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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