Google in Mozilla’s Firefox

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) December 26, 2011 --

Google promised to pay Mozilla almost $300 million annually to keep its search engine as the default in Firefox, according to a report Thursday on All Things D, a blog operated by the publisher of the Wall Street Journal. Google and Mozilla jointly announced Tuesday that they had struck a new deal to keep Google as Firefox's default search engine, and on the browser's home page. At the time, Mozilla said only that it had "negotiated a significant and mutually beneficial revenue agreement with Google" which would last at least three years. Mozilla and Google both declined to provide additional information about the new pact, citing confidentiality requirements. Today, Kara Swisher, the co-executive editor of All Things D, said unnamed sources told her that under the agreement, Google will pay slightly less than $300 million per year to Mozilla . Swisher also said that the price had been pushed upward by bidding from both Microsoft, which operates the Bing search site, and Yahoo. According to metrics company com Score, Bing and Yahoo were tied in November for second place, each with a 15 percent share of the search market. Google controlled a still-dominant 65 percent share. If Swisher's sources are on target, the $300 million would be nearly triple what Google paid out to Mozilla in 2010, the last year for which the latter has released financial information. But if Microsoft did try to close a deal with Mozilla, it failed. And Mozilla benefited [This shows] the importance of the browser as a category," IDC's Hallway said. "Browsers are free but extrapolating from this deal we have a $1 billion market based on monetization through the browser search bar alone." In 2010, Google's payment accounted for 84 percent of Mozilla's total revenues, or approximately $103 million. In 2009, Google forked over about $89 million, or 86 percent of Mozilla's income, to have Firefox's default search spot. Total payments to Mozilla by Google during the years 2008-2010 were about $260 million, or $40 million less than the open-source maker of Firefox would receive in one year under the alleged new deal.

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