Yahoo announces Google ad partnership

Within hours of announcing the end of talks with Microsoft, Yahoo has revealed that it has entered a search advertising partnership with Google. The exact terms of the partnership are a little technical, so here’s the relevant bit straight from the official press release:

The agreement enables Yahoo! to run ads supplied by Google alongside Yahoo!’s search results and on some of its web properties in the United States and Canada. The agreement is non-exclusive, giving Yahoo! the ability to display paid search results from Google, other third parties, and Yahoo!’s own Panama marketplace.
Under the terms of the agreement, Yahoo! will select the search term queries for which – and the pages on which – Yahoo! may offer Google paid search results. Yahoo! will define its users’ experience and will determine the number and placement of the results provided by Google and the mix of paid results provided by Panama, Google or other providers. The agreement applies to paid search and content match and does not apply to algorithmic search. The agreement also applies to current partners in Yahoo’s publisher network.

The important part is that Yahoo believes the agreement will significantly improve its operating cash flow, while at the same time providing the freedom to develop its own search and advertising services. Also of interest to users is that, as part of the agreement, Yahoo and Google plan to make their instant messaging services (Yahoo Messenger and Google Talk) interoperable.

Yahoo says the deal doesn’t require regulatory approval, but the two companies have nonetheless agreed to hold things up for three months while the U.S. Department of Justice reviews the deal. Assuming everything goes well, the agreement will be valid for at least four years and as many as ten years, unless there’s a “change of control” of either company. In such an event, either party would be free to end the partnership.

Comments closed
    • UberGerbil
    • 11 years ago

    Well, Wall St certainly thinks this is a net win for Google and MS and a loss for Yahoo.

    • Tommyxx516
    • 11 years ago

    I think Yang just confirmed to the world that they will never be #1 in anything as long as they show they NEED to work with a rival.

    • WaltC
    • 11 years ago

    Heh…;)

    Within hours of Microsoft making it known that it was willing to buy Yahoo! at a premium share price, Yahoo! began negotiations with Google, among many other things, to derail that bid and effectively ensure that Yahoo! stock would never be worth a premium again…:D And in the process, Yang and pals keep their cushy positions and except for Yahoo! stockholders everyone lives happily ever after, even as Microsoft is hiring away Yahoo’s! best and brightest from right under Yang’s nose…;)

    I think Yang’s yin might be a bit off, lately.

    • pogsnet
    • 11 years ago
    • SGT Lindy
    • 11 years ago

    MS just cant catch a break these days.

    NPD just released their numbers for the month of May yesterday. PS3 powned the 360 again in sales, and June it will crush the 360 again with MSG4.

      • d2brothe
      • 11 years ago

      . <- worlds smallest violin….really…they’re a monopoly in the OS industry…I do like their products, but I don’t really feel bad for them at any time….they can deal.

        • tfp
        • 11 years ago

        I’m pretty sure this isn’t the OS industry.

        If monopolies are such a big deal I think you should keep watch Google in the near future.

          • nerdrage
          • 11 years ago

          According to wikipedia: “Monopoly is when a specific individual or enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it.”

          How does that apply to Google?

            • UberGerbil
            • 11 years ago

            For a lot of people using the web, if a site doesn’t appear in the first couple of pages of google results it doesn’t exist. To me that’s far scarier than anything Microsoft ever accomplished (or even attempted).

            • nerdrage
            • 11 years ago

            I hope that when you say “scarier”, you’re referring to the stupidity of “a lot of people”, and not implying that google somehow controls the search engine market.

            • WaltC
            • 11 years ago

            That’s why I think Wikipedia is merely so-so in terms of definitions. I cannot see how the definition you just quoted applies to Microsoft. I mean, what “device” is it that Microsoft has so much control over? It can’t be the Windows OS, since Microsoft has no more control over that than Apple has over OS X, or SUN has over Solaris, etc. Anyone who wants to can develop software for any of these platforms at any time. It can’t be “the x86 PC” since SUN boxes and Macs and pretty much all Linux boxes are bog-standard x86 PCs, and if you buy an x86 box then Microsoft surely has no way to dictate to you what you can run on it, should you decide not to run Windows. It can’t be “the software market” since many, many more companies other than Microsoft write software that leverages Windows as well as these other operating systems…

            In truth, in order for the DoJ to find Microsoft guilty of establishing a monopoly of some kind, in a ruling that pretends that OSX, Solaris, and Linux simply do not exist, it was necessary to distort and change the traditional definition of monopoly–which is either a trust of companies conspiring together to corner the market, or else a single competitor who has eliminated all competition and is the “last man standing.” Neither of the classical definitions fits Microsoft, so a new definition and standard was applied to Microsoft–and it is this neo definition that could spell trouble for Intel, Apple, and well–any company which achieves a dominant market position. Class-action lawyers across the country are already seeking to cash in on the new, but twisted, definition of “monopoly”–as is the EUC, etc. It’s very sad.

    • Usacomp2k3
    • 11 years ago

    yahoo and gtalk and ,msn interoperable?

      • Stijn
      • 11 years ago

      That’s what I was thinking/wondering too.

      • derFunkenstein
      • 11 years ago

      if you use Yahoo, probably…if you use MSN, I’m sure you’ll only have yahoo and MSN contacts, and if you use gtalk, you’ll have gtalk and Yahoo.

        • BRiT
        • 11 years ago

        Or if you use Trillian (or some other opensource client) you’ll have all three (Yahoo, GTalk, and MSN) along with AIM, ICQ, and IRC.

    • herothezero
    • 11 years ago

    Rearranging deck chairs, anyone?

Pin It on Pinterest

Share This