Yahoo 2015 Annual Report Download - page 51

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Services Agreement with Google Inc.
On October 19, 2015, Yahoo and Google entered into the Google Services Agreement (the “Services
Agreement”). The Services Agreement expires on December 31, 2018, subject to earlier termination as
provided in the Services Agreement. Pursuant to the Services Agreement, Google will provide us with
search advertisements through Google’s AdSense for Search service (“AFS”), web algorithmic search
services through Google’s Websearch Service, and image search services. The results provided by
Google for these services will be available to us for display on both desktop and mobile platforms.
We may use Google’s services on Yahoo Properties and on certain Affiliate sites in the United States
(U.S.), Canada, Hong Kong, Taiwan, Singapore, Thailand, Vietnam, Philippines, Indonesia, Malaysia,
India, Middle East, Africa, Mexico, Argentina, Brazil, Colombia, Chile, Venezuela, Peru, Australia and
New Zealand.
Under the Services Agreement, we have discretion to select which search queries to send to Google
and are not obligated to send any minimum number of search queries. The Services Agreement is
non-exclusive and expressly permits us to use any other search advertising services, including our
own service, the services of Microsoft or other third parties.
Google will pay us a percentage of the gross revenues from AFS ads displayed on Yahoo Properties
or Affiliate sites. The percentage will vary depending on whether the ads are displayed on U.S.
desktop sites, non-U.S. desktop sites or on the tablet or mobile phone versions of the Yahoo
Properties or our Affiliate sites. We will pay Google fees for requests for image search results or web
algorithmic search results.
The Services Agreement may be terminated by either party upon certain events, including, among
others: upon a material breach subject to certain limitations; in the event of a change in control (as
defined in the Services Agreement); and subject to certain conditions and limitations, the occurrence
or threatened occurrence of certain litigation or regulatory proceedings adversely impacting the
performance of the Services Agreement or a party as a result of the continued performance of the
Services Agreement.
Acquisition of Polyvore
On September 2, 2015, we completed the acquisition of Polyvore, a social commerce website, for
$161 million. Polyvore lets users across the globe discover and shop for their favorite products in
fashion, beauty and home décor.
See Note 4—“Acquisitions and Dispositions” in the Notes to our consolidated financial statements for
additional information.
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