Yahoo's Firefox deal risks dropping into the red
Yahoo's annual payments of $375 million to Mozilla for making the search provider Firefox's default in the U.S. increasingly looks like a bad deal for Yahoo as Firefox's user and usage shares continue to contract.
According to documents filed with the U.S. Securities & Exchange Commission (SEC), Yahoo paid Mozilla $375 million in 2015, and is obligated for the same amount each year through 2019 under a five-year contract.
Yahoo's annual payment was about $100 million more than Google paid Mozilla during their last deal, which ran from late 2012 to late 2014. Mozilla ended its association with Google in November 2014 when it switched to Yahoo to generate revenue. Computerworld arrived at Google's annual payments of $275 million using Mozilla's financial statements, the most recent of which portrayed 2014.
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