Google and Yahoo collaborative ad-sharing deal kiboshed by U.S. Department of Justice
“Yahoo, which doesn’t have to pay any termination penalty, now says it’s moving on.”
The proposed partnership deal, first announced in June 2008, would have allowed Yahoo to display ads from Google and then take a portion of the revenue. Google’s current share of the online ad market is estimated to be as high as 70 percent, with Yahoo controlling 20 percent and Microsoft controlling between 8 percent and 10 percent. If a deal between Google and Yahoo were to go through, Google would have ended up controlling 90 percent of the search advertising market – a prospect that scared many marketers and advertisers. The outcome would have invariably meant, higher prices, and worse: Yahoo inventory at Google prices! Moreover, because Google’s search results generate higher revenue than Yahoo, the latter was planning to exit search marketing all together and essentially outsource it’s advertising to Google. If only the U.S. Department of Justice was as diligent at regulating financial services…
Read more about the saga on CNET: http://news.cnet.com/8301-1023_3-10082800-93.html
