Yahoo Seeks Google Help As Revenue Falls

Yahoo (Hanover: YHO.HA - news) has announced a deal with rival Google to work together on advertising and internet search after its latest financial results disappointed.

The third quarter figures, which showed another three months of declining revenues, prompted a 2% fall in its share price in after-hours trading.

Yahoo revealed an 8% decline in sales on the same period a year ago - prompting under-pressure chief executive Marissa Meyer to pledge further cost-cutting and a new growth plan.

She (Munich: SOQ.MU - news) promised more details early next year but said: "We see a unique moment and opportunity for Yahoo as we move into 2016 to narrow our strategy and focus on fewer products with higher quality to achieve better growth and better results."

This strategy would seem to be at least partly realised in Ms Mayer's deal with Google, her employer until taking the top job at Yahoo, which is subject to approval from competition regulators.

Yahoo plans to grow revenues by sending some traffic to Google's search engine while still using Microsoft (NasdaqGS: MSFT - news) 's Bing.

It (Other OTC: ITGL - news) has been seeking greater flexibility after losing market share in search over the past seven years (Other OTC: UBGXF - news) .