The Corporation has a contract with a search engine provider for royalties which expires November 2011. Approximately 84% and 86% of royalty revenue for 2010 and 2009, respectively, was derived from this contract.
In 2010, 84% of Mozilla’s $123 million in revenue came directly from Google. That’s roughly $100 million in funds that will vanish or be drastically cut if the deal is either not renewed or is renegotiated on terms that are less favorable to Mozilla.
When the original three-year partnership deal was signed in 2008, Chrome was still on the drawing boards. Today, it is Google’s most prominent software product, and it is rapidly replacing Firefox as the alternative browser on every platform.
With its biggest source of revenue likely to dry up and a platform that is under attack from Microsoft and Google, how long will it take before Firefox slides into irrelevance?
UPDATE: Firefox is not dying anytime soon as Google has renewed their search deal with Mozilla once again, with almost 3 times the deal they struck with them in 2008. Google will be paying Mozilla $300 Million per year in the search deal.