Yahoo to replace Google on Firefox

<p>Yahoo will become Firefox’s default search engine in the US.</p>

Yahoo is set to become Firefox's default search engine in the US.

The tech giant takes over from online superpower Google and will be the go-to option for internet users across the pond. In anticipation of the December launch, Yahoo stated that it will be developing a "clean, modern and immersive design". It also brings an end to Google's partnership with Firefox maker Mozilla which has been running for the past ten years.

Firefox was first launched in 2002 to rival established internet browsers such as Internet Explorer. It was initially developed for Windows, OS X and Linux and then was expanded to include a mobile version for Android mobile handsets.

As of February 2014, Firefox was estimated to have a global usage of between 12 per cent and 22 per cent, making it the third most web browser. Only Google Chrome and Internet Explorer can boast higher figures. Yahoo's ability to secure a deal to be Firefox's main search engine is seen as a major coup and makes a dent in Google's dominance of the sector.

According to figures from research firm comScore, Google remains a major player in the search engine stakes with 67 per cent of all searches from US desktops going through the company. Microsoft is second with 20 per cent while Yahoo is third with ten per cent. However, this new deal is aimed at boosting Yahoo's market share.

Announcing the five-year deal, Marisa Mayer, Yahoo's chief executive, described it as one of the most important deals in the company's history, adding: "At Yahoo, we believe deeply in search it's an area of investment and opportunity for us. It's also a key growth area for us.

"This partnership helps to expand our reach in search and gives us an opportunity to work even more closely with Mozilla to find ways to innovate in search, communications and digital content."

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.