- November 7, 2008
- Posted by: admin
- Categories: Blog, Search Marketing
Google has decided to abandon its advertising partnership with Yahoo to avoid having a “protracted legal battle” with regulators.
The deal involved Google providing some of the advertising around Yahoo’s search results and would have been worth $800m (£494m) a year to Yahoo.
It was originally announced in June but has faced anti-trust objections.
Yahoo said in a statement it was disappointed that Google had decided not to fight for the deal in court. Yahoo was allegedly relying on the deal with Google to help to placate shareholders angry about Yahoo rejecting Microsoft’s takeover offer.
How can we best analyze this action – is this truly a reaction to the anticipated ‘legal battle’ that may have followed this partnership, or is this yet another of Google’s planned objectives, which may prove to be a big blow to its arch rival. Furthermore, will this event favor a third party (Microsoft), as is the case with all major face-offs?