Yahoo! Inc. (NASDAQ:YHOO) CEO, Marissa Mayer, says she is unhappy with the deal her company made with Microsoft Corporation (NASDAQ:MSFT) years before she took the helm of the company. She revealed this while speaking at the Goldman Sachs Group, Inc. (NYSE:GS) tech conference on Tuesday. The deal took effect in the U.S. in 2010, although it didn’t go to Europe until 2012.
Mayer said the big problem with the pact between the two companies is that instead of collectively growing market share, they’re just trading with each other. The 10-year agreement was originally aimed at creating a solid competitor for Google Inc (NASDAQ:GOOG). However, Google continues to hold more than 65 percent of the search market share.
ComScore reported, in December, that Microsoft Corporation (NASDAQ:MSFT) had 16 percent of the search market share and Yahoo! Inc. (NASDAQ:YHOO) had 12 percent of the market share. Two years ago those numbers were reversed.
Mayer said they need to see more monetization of the partnership because they’ve seen competitors pull off similar partnerships and make them work very well. Although there have been indications in the past that the deal between Yahoo and Microsoft Corporation (NASDAQ:MSFT) could end early, this is the first concrete evidence to back up those indications.
Yahoo! Inc. (NASDAQ:YHOO) recently partnered with rival, Google Inc (NASDAQ:GOOG), for contextual display ads and some co-branded sites.
At the Goldman Sachs conference, Yahoo! Inc. (NASDAQ:YHOO)’s CEO also said the company will be cutting down on the number of mobile apps it offers. The company intends to trim its 60 apps down to 15 or 16 apps. She said the high number of apps the company has right now has made its product portfolio “very scattered.”
Mayer also reiterated the four focuses she named on the company’s last investor call: search, display ads, mobile and video.