Google paying Mozilla $300 million per year for search deal

Summary:Mozilla's big reliance on Google might actually be worth it -- up to the point of $300 million per year.

Mozilla's reliance on Google seems to be worth it -- at least for the next three years as the search engine giant is reportedly paying the Firefox maker $300 million per year under the new search deal.

AllThingsD reports that the payoff, close to $1 billion for all three years, "was the minimum revenue guarantee for delivering search queries garnered from consumers using Firefox."

When the agreement was announcement first on Tuesday, financial terms were not disclosed except that it would provide “a significant and mutually beneficial revenue” stream for both parties. If Mozilla is getting this amount as part of the bargain, it will just as interesting to see what Google can do with this opportunity as well.

This will also make matters significantly more competitive in the search market against Yahoo and Microsoft's mutual search agreement.

Other search engines that sit below Google within the Firefox browser are Yahoo, Bing, Amazon.com, eBay and Wikipedia.

See also: Google and Mozilla renew search deal, but on what terms? Firefox hits the jackpot with almost billion dollar Google deal

Even before Google and Mozilla renewed their agreement this week ensuring that Google would be the default search engine on Firefox, it was questionable how much that Mozilla should rely on Google for its revenue.

After all, it was revealed that Google contributed approximately 84 percent of Mozilla’s $123 million in revenue last year.

But it is apparently paying off, at least in the short term, as it effectively triples Mozilla's revenue for the next few years.

Related:

Topics: Google, Browser

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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