Yahoo Google Deal: Yahoo Adds AdWords Search Deal

Posted by Admin on June 14th, 2008 at 01:43pm

Yahoo signed a new advertising deal with Google that will face antitrust scrutiny during the next 90 days or so. The deal, which will not be executed until regulatory review is completed, will allow Yahoo to display some ads sold by Google.

U.S. Senator Herb Kohl (D-WI), chairman of the Senate Antitrust Subcommittee, issued the following statement in response to the announcement by Google and Yahoo:

“We will closely examine the joint venture between Google and Yahoo announced today. This collaboration between two technology giants and direct competitors for Internet advertising and search services raises important competition concerns. The consequences for advertisers and consumers could be far-reaching and warrant careful review, and we plan to investigate the competitive and privacy implications of this deal further in the Antitrust Subcommittee.”

The benefit to Yahoo? An estimated $800 million in annual revenue come come through improved monetization of search. For now, the deal is limited to search. Google and Yahoo are looking at ways to expand the partnership, most likely into display advertising.

Yahoo will determine how Google’s ads are displayed. Yahoo’s pitching the agreement as part of its “open strategy” but it’s a clear indication that Yahoo Panama failed to deliver.

Yahoo President Susan Decker called the pact “a bridge” that will help the company create a unified display and search business. Yahoo said either party can end the agreement in the event of a change in control. If that happens in the next 24 months, Yahoo would be penalized with a termination fee of $250 million, less some of the revenue Google had earned through the deal.

Full text of the agreement after the jump:

Click to read the rest of this post…

Read More…

[Source: Search Engine Watch Blog]

Under General