That Yahoo-Mozilla deal isn't as horrible as we thought it was

Yahoo CEO Marissa MayerYahooYahoo CEO Marissa Mayer

Earlier this month, it was reported that Yahoo had made a search deal with Mozilla that guaranteed $375 million a year until 2019, even if the Firefox-maker ditched Yahoo for a different search engine.

But a new report by the New York Times says that deal may not be as bad as it was once thought to be.

According to the report, the company acquiring Yahoo is only required to pay the difference between the $375 million annual guarantee currently in place and the fee Mozilla’s new partner agrees to pay in the future.

On top of that, Mozilla will have to explain how exactly the Yahoo partnership is hurting its brand and search experience to get out of the deal, it said.

The new details could significantly alter the way potential buyers evaluate their bids for Yahoo, which is currently seeking buyers for its core internet business. It could potentially make the deal much more attractive, as it keeps the buyer partially off the hook for the $375 million a year payment.

Yahoo is reported to have set July 18 as the final date for the bids. Currently, Verizon, AT&T, and a number of private equity firms, including TPG, are reported to be front-runners for the bid.

Yahoo shares largely remained flat as of Thursday afternoon.

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