Although it may seem so from the outside, the whole Firefox vs. Chrome rivalry is blown out of proportion. Many people at Mozilla are happy that there is choice in what browser you can use, instead of the IE monopoly there used to be.
Looks more like Mozilla is parting ways with Google because of money -- whether Yahoo! offering more than Google has in the past or Google offering less.
(Though, looking at historical usage share measures, there's a good argument that if Google is offering less, its likely because Chrome eclipsing Firefox -- and by some measures IE -- has reduced the value of default search placement in Firefox.)
Yahoo is looking at the same marketshare numbers, so that actually can't be the reason.
It certainly can be the reason that Google's offer isn't as strong -- the value of default search place in the third-place-with-continuing-declining-share browser is conceivably quite different to a party that owns what is, depending on which measure you look at, either the first- or second-place browser and a party that doesn't have any browser.
Either it's scaling effects (owning a few percent makes you more known, which drives new users) or Yahoo is better at selling ads through those users. Note that in the former case, there's even more incentive for Google to block. And if the second is true, oh boy, they certainly have a problem at G...
There's Chrome, in competition with Firefox, Mozilla's core business. There's also Google increasingly looking like a search monopoly, whereas Mozilla's mission is to "promote choice and innovation on the Internet." There's also the fact that Google are now feeling so secure about their grip on search that they were looking to reduce the amount they were paying to Mozilla in their partnership.
Individually, perhaps none of the reasons was quite enough for Mozilla to ditch their partnership with Google, but combined, it makes a whole lot of sense.
Created by Google. People often forget (or don't know) that Microsoft's IE once almost had a browser monopoly. Many online applications accepted only IE as browser. Surprisingly, Microsoft did not fight hard to keep the monopoly and even dissolved their team of IE developers. Google and 'their' Firefox took the opportunity. I never understood why Google created their own browser instead of tightening their already strong relationship to Mozilla.
Contrary to most opinions here, I think that Mozilla's decision is more likely the beginning of the end than a promising "strategic partnership".
Most likely because they couldn't own Mozilla. Just as Apple created Safari instead of promoting either Firefox or Camino, because they couldn't own Mozilla.
Both cases are companies that attempt to own the entire silo.
> Contrary to most opinions here, I think that Mozilla's decision is more likely the beginning of the end than a promising "strategic partnership".
We shall see. However, I believe that the previous situation was unhealthy: Mozilla was funded mostly by a competitor with a clear and present interest in making Firefox irrelevant.