Facebook and Yahoo! make peace
It's always nice to see two parties walk out of the courtroom with a settlement that they are both happy with.
This seems to be the case with Facebook and Yahoo!, despite the fact that the two companies have been warring over patents and intellectual property issues for months.
Yahoo! sued Facebook in March, claiming that the social media giant had breached several patents, including advertising, privacy and messaging.
Yet since appointing an interim chief executive in May, Ross Levinsohn, it appears that Yahoo! has been working closely with Facebook's chief operating officer Sheryl Sandberg to come to an agreement.
Rather than parting their separate ways or battling it out in court for large sums of money, the two companies have instead opted to rollout a new advertising partnership.
They will also implement a fresh social media marketing plan, with collaboration to be the focus of the future and court to be a thing of the past.
According to an official joint release by Facebook and Yahoo!, patents will now be cross-licensed and the two technology giants will now come together to deliver effective advertising and engaging consumer experiences.
Mr Levinsohn said that he was "excited" about this shift in direction.
"We are excited to develop a deeper partnership with Facebook, and I'm grateful to Sheryl and her team for working hard together with our team to develop this dynamic agreement," he said (July 6).
"We are looking forward to building on the success we have already seen to provide innovative new products and experiences for both consumers and sponsors. Combining the premium content and reach of Yahoo! as the world's leading digital media company with Facebook provides branded advertisers with unmatched opportunity," he asserted.
Ms Sandberg – who was recently appointed to the Facebook executive board – also expressed contentment with the agreement.
"I'm pleased that we were able to resolve this in a positive manner and look forward to partnering closely with Ross and the leadership at Yahoo!," she said.
Posted by Jess O'Connor