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Yahoo Ready To Give Google Search Ad Business

Microsoft will have something to say, we're sure

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Only a few days into what was described as a limited test of AdSense for Search in Yahoo’s search results, rumors began that Yahoo would hand over more business to Google.

Well that didn’t take long. A week into the AdSense test on Yahoo, and already Jerry Yang wants to leap into Eric Schmidt’s open arms.

The Wall Street Journal cited people close to the matter on the likely expansion of this current partnership. Dropping AdSense into a limited set of Yahoo search results proved a positive experience.

Any expansion of the deal will have to be restricted in scope. Google and Yahoo own the top two search ad businesses; attempts to give Google a substantial part of Yahoo’s paid search probably means lawsuits from Microsoft over antitrust concerns.

Microsoft already protested the initial test, claiming a Yahoo-Google tie-up places 90 percent of the search ad market in one place. They are extremely unlikely to sit idle in the face of an expansion of this first test.

Rob Hof believes there is something fishy about the accelerated pace being suggested by the Journal. "Of all the back-and-forth negotiating tactics we’ve seen in this overlong Kabuki dance so far, this one takes the cake," he said of the drawn out process of Microsoft’s takeover bid for Yahoo.

"Even the $1 billion a year that Citigroup thinks an outsourcing deal could add to Yahoo’s cash flow probably wouldn’t sway Yahoo shareholders staring at a $45 billion Microsoft buyout offer, so why would some smaller portion of that sway them any more?" he asked.

Yahoo Ready To Give Google Search Ad Business
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  • http://www.heaven4affiliates.com Affiliate Training Guide

    It will be fun to watch how this one turns out:-)

  • Guy

    Yahoo will be Microsoft’s, that’s inevitable and good news for users. 

    Google needs to be stopped before it owns the air that we breath, which will be sooner than people think. 

  • Lyle

    Well it would be interesting to see how ckick fraud will flourish in a monopoly.

  • Danielle

    M$ can buy yahoo and no one cares, but if google helps yahoo or yahoo limits they’re ad business by "giving more money to google" people have got to cry fowl? What gives???

    Microsoft can basically do what they want when they want. They’ve proven that in the past. Even the "break up" of they’re company really hasn’t even hurt them either.

    There needs to be players in this game and who cares who’s the leader? But I do know one thing, I will oppose a buyout between google & yahoo or M$ & yahoo. The last thing we need right now is less competition.

    If yahoo & M$ can’t figure out how to make more money from what they currently have then that’s they’re fault. A merger will not help the situation and will only cause harm to the industry.

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