Yahoo’s Search Business Has “Fallen Off The Cliff”

carol bartz

[credit provider=”AP”]

Earlier today data came out of comScore showing a moderate dip in Yahoo’s search share.Apparently, that data isn’t telling the full story of Yahoo’s search woes.

A source close to Yahoo’s business tells Kara Swisher of All Things D the search business has “fallen off the cliff,” both from a market share perspective and from a revenue per search perspective.

Swisher says the big problem is the partnership with Microsoft in search is still not delivering results. She also suggests it might not ever deliver results.

Microsoft will be covering the dip in revenue per search, so Yahoo is OK from that angle. But, this is a huge partnership for both companies, and if it doesn’t work out, then that’s a big problem.

It’s worth noting it’s still early in the integration, and sources we’ve spoken with at the companies say it’s not expected to really take off until the middle of this year.