Yahoo! Inc. (YHOO) CEO Marissa Mayer’s Another Gamble Firefox?

Yahoo! Inc. (NASDAQ:YHOO) and Mozilla have inked a strategic agreement that will make Yahoo the default search for Firefox in a five-year deal. CNBC’s Pete Najarian believes the announcement will not have any big impact on the company’s stock in the long term.

Yahoo! Inc. (NASDAQ:YHOO)

The deal is a big win for Yahoo against its fierce rival Google Inc. (NASDAQ:GOOGL) which had been supporting Firefox as the company seeks to regain lost ground on the internet ad market. Yahoo latest agreement brings to an end a 10-year partnership between Google and Mozilla.

“I think what is moving the needle right now for Yahoo has nothing to do with their core business, I don’t think it has to do with the Mozilla deal. I don’t think it has to do with any of the deal that Marissa has been trying to transact, “said Mr. Najarian.

The analyst believes the recent resurgence in Yahoo stock in the market mostly has to do with the company’s stakes in Alibaba. Najarian remains bullish on Yahoo! Inc. (NASDAQ:YHOO) reaching highs of $55 a share up from the current trading margins of $50.

The Mozilla deal will in the future provide a framework in which both parties can explore the integrations of other products as well as other distribution opportunities in the market. The partnership is also expected to introduce a new enhanced experience for Firefox users with the launch of a new product in December.

CEO Marissa Mayer has already stated that a partnership with Mozilla will allow Yahoo! Inc. (NASDAQ:YHOO) to expand its reach in search business that continues to act as a key growth area. Partnering with Mozilla will also give Yahoo an opportunity to work closely with other experts in innovating more closely the search business.

The partnership also gives Mozilla an opportunity to grow Firefox into becoming a browser for everyone with more choice and opportunity for growth and innovation. Mozilla might have opted out of a deal with Google Inc. (NASDAQ:GOOGL) as the giant search engine continues to popularize its own browser, Chrome at the expense of Firefox.


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