Google to Pay Mozilla $900 Million in Search Deal

Google is set to pay the Mozilla foundation some $900 million over the next three years to feature the search engine at the heart of the Firefox browser.

The search deal between the two firms was set to run out this year with many speculating that it wouldn't continue. However, now Mozilla is set to make nearly three times its traditional yearly revenue from Google's annual payments alone.

The reason that it was thought this joint effort between the two firms might die is due to the growth of Google's own Chrome browser which recently has overtaken - or is at least close to depending on who you speak to - Firefox as the second most popular browser.

Eweek has it that Mozilla will be using the money from the search giant to develop further projects beyond the browser. CEO David Ascher said that the company would be working on projects such as Boot2Gecko, a Firefox based operating system for smartphones. It will also be working on an apps platform that will help developers write software for a wide variety of devices.

Google's benefits from the deal are mainly based on increased search numbers and therefore boosted revenue from advertising. Mozilla is said to be taking a share of this income too.

It seems that the Firefox creators did the best out of this deal, but it was able to charge such a high price by also offering the default search position to Microsoft and Yahoo.