Not too long ago, there was a bit of uncertainty over the fate of Mozilla and its popular Firefox browser.
With its biggest cash cow up in the air, who was going to pay the bills to keep Firefox alive? There was talk that Google
The happy couple declined to disclose terms of the deal, but last year Google had paid about $101.7 million to the Mozilla Foundation for the precious default search spot. Thanks to a recent report by AllThingsD, we now have some figures. Firefox still claims about a quarter of the browser market, and that chunk had other search rivals, such as Yahoo!
The trio had something of a bidding war for the default search spot, and despite Bing's continued losses, it was gunning pretty hard to cut in during the dance and go steady with Firefox. How much was Mozilla able to garner for its services? The final price tag on the deal landed just under $300 million per year. That's a hefty jump from the amount paid in 2010, and it shows that Mozilla was really never in danger, since other search partners were ready and waiting to move in if Google moved out.
Over the next three years, Big G will be paying up almost $1 billion, which was the minimum revenue guarantee that Mozilla demanded. Yahoo! was at the bargaining table but had supposedly dropped out once the price got too high, and it has a little less motivation since Bing powers its search anyway. Yahoo! still wants to stop its falling market share, but at what cost?
Some of Mozilla's other search partners include Amazon.com
It looks like Firefox is here to stay, and Mozilla's top-line revenue may see an approximately 200% jump. That will sure cover its rising R&D costs, and it will still have enough left over for a Christmas party.
Chrome and Android are two examples of how Google builds its Buffett-worthy moat with free products. With Android leading the mobile revolution, some winners are hard to see -- because they're buried inside the gadgets. The proliferation of mobile gadgets is going to be breathtaking, and a handful of companies stand to rake in the profits as consumers snap up each year's latest and greatest models. We've just released a new special free report on 3 Hidden Winners of the iPhone, iPad, and Android Revolution. In it, you'll find three companies that supply crucial components that virtually every mobile device relies on. Check it out now -- it's free.
Fool contributor Evan Niu owns shares of Amazon.com, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Yahoo!, Amazon.com, Microsoft, and Google. Motley Fool newsletter services have recommended buying shares of Microsoft, eBay, Google, Amazon.com, and Yahoo!, creating a bull call spread position in Microsoft, and writing puts in eBay. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.