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December 23rd, 2011, 10:35 GMT · By

Google Will Pay Mozilla $1 Billion, €766 Million for Default Search Spot in Firefox

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Mozilla has assured its future for the next few years
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A couple of days ago, Mozilla and Google announced that they renewed their search deal and that Google would pay to be the default search option in Bing for three more years.

The financial details of the deal were not disclosed, as is the norm. This gave those that had been predicting the end days for Firefox, some of whom have been doing this for quite a long time, an excuse to speculate some more on how Firefox is doomed.

The thinking went that, since the two sides did not present a copy of the contract, it must certainly mean that the terms were much harsher for Mozilla. With less money, Firefox's days were numbered.

Well, the numbers are out, albeit from an unofficial source, and they paint a very interesting story. Kara Swisher found that Mozilla is not only not getting worse terms, it will make three times more money from Google.

Mozilla stands to make at least $300 million, €230 million from Google per year for the next three years. It may actually make even more, since the sum is just the minimum guarantee.

Depending on the terms of the deal, if Firefox exceeds certain metrics, Google may be sending even more towards Mozilla. What this means is that Mozilla will be making in the realm of $1 billion, €766 million in revenue in three years.

It should be fun to see what naysayers will come up with this time to 'prove' their theories that Firefox is dying.

Mozilla made $123 million, €94 million in 2010, its biggest year to date, 84 percent of which came from Google. The company is paid by all of the commercial sites that are included in the search options.

You can imagine that a three-fold increase in revenue for a company that uses most of its funds to actually create the product, Firefox, is a very good thing.

Mozilla is very determined to be a player in the mobile browser market and has been pushing hard to develop Firefox for Android. It is actively hiring software engineers to work on the mobile browser. But it needs resources to continue to work on it and Google's money may be just the thing.

The mobile browser is just one aspect, Mozilla has plenty of other projects aimed at improving the web, BrowserID, the open web apps projects, even the operating system that plans to compete with Chrome OS to a degree.

Regardless of whether you're a Firefox user or not, Mozilla thriving will affect you. Google Chrome is great, but it's built by Google and it serves its interest. Same goes for Internet Explorer or Safari. Mozilla is the only one taking the user's side and it forces everyone else to fall in line.
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READER COMMENTS:


Comment #1 by: Eric on 27 Dec 2011, 20:49 UTC reply to this comment

Seems the last paragraph always sneaks in editorials...

"Google Chrome is great, but it's built by Google and it serves its interest. Same goes for Internet Explorer or Safari. Mozilla is the only one taking the user's side and it forces everyone else to fall in line."

I'm just not sure I agree with this assertion in that I don't believe it is firefox that is forcing browser makers to "fall in line". If anything, Chrome has been the driving force recently with things like automatic background updates and a more simple, intuitive interface. I also don't think that just because Firefox isn't directly made by Google it is automatically "taking the user's side" any more than Chrome or Microsoft.

Isn't the whole point of this article about how they are paid by Google, funded like any other company? So don't they also have vested interests to protect other than the user's...? Especially with Google paying over 80% of their bills?

Besides, a company's vested interest or disinterest is complete irrelevant as to if the product is good for the end-user. My point is that firefox and chrome could be just as invested into providing the user a good experience, and that just because Chrome is made by Google (which apparently FF is too, by funding) doesn't mean Firefox is somehow more "on the user's side". That's silly...I don't care whose "side" they are on so long as the product is good for me...

Comment #1.1 by: Lucian Parfeni on 28 Dec 2011, 09:00 GMT

This isn't about product quality. Google Chrome is great, if anything, it's better than Firefox in many respects.

The point was that each company protects its interests, including Mozilla. The difference is that Google's interests are its search business, Google+ and its many other sites, Microsoft's interests are selling Windows and its many online services. Mozilla's interests are its users, if only because that's what it sells to Google and others, users.

The more users Firefox has, the more money Mozilla makes, it's a direct relationship. At the same time, the only thing tying people down to Firefox is the quality of the product and the protection of their 'choice,' i.e. the choice to opt-out of targeted advertising, the choice of not having to be logged into a Google account for features such as sync to work, the choice of not running Windows and so on.

Mozilla is not without its flaws and nor is Google or Microsoft evil, but they have different reasons to build their browsers.

Comment #1.2 by: Eric on 28 Dec 2011, 21:16 GMT

Well, that is a really good point :) And in many ways there aren't many modern products that are like Firefox, where they don't have a direct consumer, per se.

I've always been very glad that there is an option outside the corporate goliaths of Google and Microsoft; even if I don't use it (except for Firebug :D) its existence really is important as you noted in the article. I'd like to believe it keeps both MS and Google a little more honest.

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