Google is selling ads on Yahoo’s new Yahoo Business for $1.2 billion per year, a new filing from the tech giant revealed.
Yahoo’s parent company also said it is seeking an additional $500 million to $1 billion to fund a new Yahoo Enterprise Services division.
Yahoo also announced on Thursday it will no longer allow advertisers to use the Yahoo ad network to generate revenue.
The new Yahoo business will allow advertisers who want to target Yahoo users with Yahoo’s advertising to do so without paying Yahoo’s ad network.
Yahoo previously had a $500 per-month fee for Yahoo ads.
Yahoo is offering the new Yahoo ad revenue to advertisers through the Yahoo Finance business, which will be renamed Yahoo Finance Global.
Yahoo Finance Global will be a new unit that will have Yahoo Finance’ core product and operations.
Yahoo Finance will continue to handle its core product strategy and will not be merged with Yahoo Finance.
Yahoogroups new revenue source will also be used to expand the Yahoo Business portfolio.
The company is also looking to increase revenue from a portfolio of smaller businesses and organizations, including local content and business analytics.
The new revenue will come from the sale of Yahoo Business business to Yahoo Finance for $900 million.
The business also will have new product and services that Yahoo Finance has acquired.
Yahoo Business revenue will be the first time it will be used as part of a business to create a revenue stream.
Yahoo has a $5.6 billion revenue position for its Yahoo Finance businesses.
In its filing with the SEC, Yahoo Finance said it will spend the new revenue on a “broad range of new business growth initiatives,” including growing Yahoo’s online advertising business, acquiring another Yahoo Finance company, launching new products, and supporting its existing and future businesses.
Yahoo said the new business will focus on helping it attract, retain and grow Yahoo’s user base.
“This will be an opportunity for Yahoo Finance to build on the growth it has achieved over the last six years,” Yahoo Finance Chief Executive Marissa Mayer said in a statement.
“Yahoo has been a leader in building brands that are relevant to a global audience and we are proud to partner with Yahoo and Yahoo Finance as we continue to build the next chapter of our business.”