5 ms·

They make 90% of their revenue from Google paying to have Google be the default web search on FF. A deal which is expiring in 2021 and hadn't yet been renewed.

acqq 6y ago
https://www.zdnet.com/article/sources-mozilla-expected-to-extend-its-google-search-deal/ https://www.zdnet.com/article/sources-mozilla-expected-to-ex... "Mozilla and Google are expected to extend their current search deal for another three years, multiple sources have told ZDNet." "Terms of the new deal were leaked to this reporter after Mozilla announced plans to lay off more than 250 employees on Wednesday". "Mozilla officials are expected to announce the search deal's extension later this fall, in November".
deklerk 6y ago
Where are you getting 90% from? AFAICT it's closer to 50% or 60% [1] [2]. And, note, that deal was only a 4 year deal from 2017-2021 [1]. It's not like a decades-old source of revenue that's dried up. And even though the deal is expiring, they've had deals before (yahoo etc), and will certainly have more in the future. 1: https://www.computerworld.com/article/3240008/mozillas-record-2016-revenue-funded-its-firefox-quantum-browser.html https://www.computerworld.com/article/3240008/mozillas-recor... 2: https://www.cnet.com/news/google-firefox-search-deal-gives-mozilla-more-money-to-push-privacy/ https://www.cnet.com/news/google-firefox-search-deal-gives-m...
- stonogo 6y ago
  The 90% number probably comes from Mozilla's financial report, last released for 2018 [1]. "Approximately 91% and 93% of Mozilla’s royalty revenues were derived from these contracts for 2018 and 2017, respectively, with receivables from these contracts representing approximately 75% and 79% of the December 31, 2018 and 2017 outstanding receivables, respectively." Since for 2018 'Royalties' income was about 430 million, and reports are[2] that the deal was 300 million per year from Google, it's still a massive chunk of Mozilla's operating income, but you're right, it's not 90%. It's more like two thirds of their revenue coming from their market-dominant direct competitor. Also note that while this specific contract is a four-year deal, Google had been paying Mozilla millions even before then; in 2006 most of Mozilla's money came from Google (note the source is a now-deleted blog post from the current CEO of Mozilla)[3]. It is indeed a decades-old source of revenue, but it remains to be seen if it's dried up; word is they're renewing the contract, but we'll have to wait for Mozilla's next financial report to get more information. 1- https://assets.mozilla.net/annualreport/2018/mozilla-fdn-2018-short-form-final-0926.pdf https://assets.mozilla.net/annualreport/2018/mozilla-fdn-201... 2- http://allthingsd.com/20111222/google-will-pay-mozilla-almost-300m-per-year-in-search-deal-besting-microsoft-and-yahoo/ http://allthingsd.com/20111222/google-will-pay-mozilla-almos... 3- https://www.cnet.com/news/a-dangerous-conflict-of-interest-between-firefox-and-google/ https://www.cnet.com/news/a-dangerous-conflict-of-interest-b...
  - deklerk 6y ago
    Thanks for these great links! This is very informative.
portmanteaufu 6y ago
The deal was renewed today[1], which makes the layoffs that much more baffling. [1] https://www.forbes.com/sites/barrycollins/2020/08/13/mozilla-extends-critical-firefox-search-deal-with-google/#ddfa8dd6ea2d https://www.forbes.com/sites/barrycollins/2020/08/13/mozilla...
- mvn9 6y ago
  Then it was a negotiation tactic. Mozilla showed that they don't desperately need the money because they are willing to cut all expenses. Thus, Google can't play the 'take whatever we offer or you will be bankrupt in 2021'-card. Firing the developers should have led to a better deal and they can now silently rehire them back.
  - the_duke 6y ago
    Google doesn't need the search engine placement in Firefox. The market share is tiny. (sadly) I can imagine that Google is somewhat interested in keeping Firefox alive as an independent browser though, just to ward off monopoly issues. Yes, there are plenty of Chromium reskins, but Firefox is the only other remaining full, cross-platform browser engine.
    - deleted 6y ago
      [deleted]
  - blub 6y ago
    The old negotiation tactic of I'll chop my arm off to show you that I don't need your money.
    - hu3 6y ago
      tis but a scratch
      - drno123 6y ago
        flesh wound

acqq 6y ago

https://www.zdnet.com/article/sources-mozilla-expected-to-extend-its-google-search-deal/ https://www.zdnet.com/article/sources-mozilla-expected-to-ex... "Mozilla and Google are expected to extend their current search deal for another three years, multiple sources have told ZDNet." "Terms of the new deal were leaked to this reporter after Mozilla announced plans to lay off more than 250 employees on Wednesday". "Mozilla officials are expected to announce the search deal's extension later this fall, in November".

deklerk 6y ago

Where are you getting 90% from? AFAICT it's closer to 50% or 60% [1] [2]. And, note, that deal was only a 4 year deal from 2017-2021 [1]. It's not like a decades-old source of revenue that's dried up. And even though the deal is expiring, they've had deals before (yahoo etc), and will certainly have more in the future. 1: https://www.computerworld.com/article/3240008/mozillas-record-2016-revenue-funded-its-firefox-quantum-browser.html https://www.computerworld.com/article/3240008/mozillas-recor... 2: https://www.cnet.com/news/google-firefox-search-deal-gives-mozilla-more-money-to-push-privacy/ https://www.cnet.com/news/google-firefox-search-deal-gives-m...

stonogo 6y ago
The 90% number probably comes from Mozilla's financial report, last released for 2018 [1]. "Approximately 91% and 93% of Mozilla’s royalty revenues were derived from these contracts for 2018 and 2017, respectively, with receivables from these contracts representing approximately 75% and 79% of the December 31, 2018 and 2017 outstanding receivables, respectively." Since for 2018 'Royalties' income was about 430 million, and reports are[2] that the deal was 300 million per year from Google, it's still a massive chunk of Mozilla's operating income, but you're right, it's not 90%. It's more like two thirds of their revenue coming from their market-dominant direct competitor. Also note that while this specific contract is a four-year deal, Google had been paying Mozilla millions even before then; in 2006 most of Mozilla's money came from Google (note the source is a now-deleted blog post from the current CEO of Mozilla)[3]. It is indeed a decades-old source of revenue, but it remains to be seen if it's dried up; word is they're renewing the contract, but we'll have to wait for Mozilla's next financial report to get more information. 1- https://assets.mozilla.net/annualreport/2018/mozilla-fdn-2018-short-form-final-0926.pdf https://assets.mozilla.net/annualreport/2018/mozilla-fdn-201... 2- http://allthingsd.com/20111222/google-will-pay-mozilla-almost-300m-per-year-in-search-deal-besting-microsoft-and-yahoo/ http://allthingsd.com/20111222/google-will-pay-mozilla-almos... 3- https://www.cnet.com/news/a-dangerous-conflict-of-interest-between-firefox-and-google/ https://www.cnet.com/news/a-dangerous-conflict-of-interest-b...
- deklerk 6y ago
  Thanks for these great links! This is very informative.

portmanteaufu 6y ago

The deal was renewed today[1], which makes the layoffs that much more baffling. [1] https://www.forbes.com/sites/barrycollins/2020/08/13/mozilla-extends-critical-firefox-search-deal-with-google/#ddfa8dd6ea2d https://www.forbes.com/sites/barrycollins/2020/08/13/mozilla...

mvn9 6y ago
Then it was a negotiation tactic. Mozilla showed that they don't desperately need the money because they are willing to cut all expenses. Thus, Google can't play the 'take whatever we offer or you will be bankrupt in 2021'-card. Firing the developers should have led to a better deal and they can now silently rehire them back.
- the_duke 6y ago
  Google doesn't need the search engine placement in Firefox. The market share is tiny. (sadly) I can imagine that Google is somewhat interested in keeping Firefox alive as an independent browser though, just to ward off monopoly issues. Yes, there are plenty of Chromium reskins, but Firefox is the only other remaining full, cross-platform browser engine.
  - deleted 6y ago
    [deleted]
- blub 6y ago
  The old negotiation tactic of I'll chop my arm off to show you that I don't need your money.
  - hu3 6y ago
    tis but a scratch
    - drno123 6y ago
      flesh wound