Facebook and Yahoo have been locked in a legal battle for quite some time. Yahoo initially brought up the charges of patent infringement against Facebook, suing the social network. Facebook had then counter-sued with a suit of its own against Yahoo. Now, it seems that the two have realized the futility of their feud.

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Facebook and Yahoo have been locked in a legal battle for quite some time. Yahoo initially brought up the charges of patent infringement against Facebook, suing the social network. Facebook had then counter-sued with a suit of its own against Yahoo. Now, it seems that the two have realized the futility of their feud.


It seems that both companies have realized they would be able to do far better if they joined hands, rather than suing and counter-suing each other. As a result of this, an extensive strategic deal has been completed between Facebook and Yahoo.

Whereas neither of the two companies have officially divulged the details of the deal, some inside sources claim that the deal includes cross-licensing of some key patents as well as a joint advertising sales effort. Facebook is struggling to thrive its ads revenue on the mobile platform whereas Yahoo is struggling with its ever-declining popularity. So a deal of this nature may benefit both the companies.

No actual cash will exchange hands in this deal. However, as a result of the joint collaboration, the ads revenue of the two companies may witness a significant boast.  The main thrust behind the whole campaign to mint billions off Facebook was Yahoo’s ex-CEO, Scott Thompson, who had promised Yahoo’s board of directors that the lawsuit will pan out and bring in heavy funds for Yahoo.

However, now that Thompson has been ousted, Yahoo executive no longer wanted to stay embroiled in the legal feuds with Facebook and thus, this deal took place.

Source: All Things D


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  On July 7, 2012(2 years, 5 months ago.)

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