|04 Nov 2008||#1|
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Google, Yahoo agree To Deal
Rumors say Google, Yahoo agree to limit ad deal revenue.
Today may apparently be the final day for the government to have its say on the Yahoo-Google advertising deal, short of taking the potential partners to court. Rumors have suggested that Google and the DOJ set today as the deadline for hashing out some agreement, and news reports are now suggesting that the two tech companies have responded by shortening the deal and adopting policies that will limit the amount of revenue flowing Yahoo's way.
The potential deal between Yahoo and Google would see the former run ads from the latter in situations where it was unable to supply a relevant ad of its own. Although this would expand Google's reach, it would allow Yahoo to get a bit more cash from many of the search results pages it serves; the company told anyone who would listen that it planned on using that money to improve the technology behind its own ad-serving services.
Given that the deal would involve the two largest players in the search ad market, regulators in both the EU and US examined its antitrust implications. Yahoo and Google, in an attempt to ensure the deal sailed smoothly over regulatory shoals, voluntarily entered negotiations with the US Department of Justice, trying to find a way to keep the deal out of the courts.
Read more at the source.
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