Yahoo, TrueCar ‘Redefine’ Relationship
Six months after kicking off its three-year, $150 million partnership with Yahoo!, TrueCar announced yesterday that it has altered its deal with the digital media company.
SANTA MONICA, Calif. — TrueCar confirmed on Thursday that it has altered its multi-year deal with Yahoo! six months after it became the digital media company’s exclusive partner for car shoppers. Details of the financial agreement were not disclosed.
Under the “redefined” deal, TrueCar will no longer operate as Yahoo’s exclusive partner to connect car buyers with dealers, but its dealer clients’ inventory and the service’s market pricing data will still be made available on Yahoo! Autos.
“TrueCar has redefined its multi-year deal with Yahoo! in that it is now a non-exclusive, performance-based auto listing and content relationship,” read a statement from TrueCar. “The new relationship has been forged as a result of a better understanding of both parties’ capabilities and aligns economics and services around a vision of mutual success.”
Company officials declined to reveal how many sales were arranged since the relationship was kicked off on Jan. 1. Scott Painter, founder of TrueCar, told F&I and Showroom in December that the partnership could increase TrueCar's share of the new-car market from less than 3 percent in 2011 to at least 24 percent. He added that the deal with Yahoo! could triple the $100 million in annual revenue TrueCar was generating at the time.
Announced in December, the revenue-sharing deal called for TrueCar to pay a minimum of $50 million annually for three years to Yahoo!, which guaranteed 10 million unique visits a month for its Yahoo! Autos page.
Under the redefined deal, Yahoo! will launch a new TrueCar Tab in its Autos global navigation bar, and TrueCar’s new-car pricing information would be used in the research section of the site. Additionally, car shoppers using Yahoo! Autos will still be able to connect with TrueCar’s dealer network, but the new deal allows Yahoo! to seek out other service providers.
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