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Yahoo 'poisons' well, to test Google AdSense

updated 04:55 pm EDT, Wed April 9, 2008

Yahoo Using Google AdSense

Yahoo this afternoon made the unusual announcement that it would start a trial of Google's AdSense for Search service. The experiment will see Google's keyword-sensitive ads appear along some search results for visitors to the Yahoo website coming from the US. Starting the trial doesn't commit the company to the practice and will account for just three percent of all searches run on Yahoo's site, leaving the search engine firm's premium partners unaffected.

Significantly, Yahoo adds that it won't comment on the "nature or timing" of the decision but makes clear allusions to the move in the context of Microsoft's hostile takeover attempt. The Sunnyvale, California-based web company claims that its AdSense trial is an example of the company "maximizing shareholder value," language it recently used in an open letter to Microsoft CEO Steve Ballmer that formally rejects a deadline created by Microsoft to either accept its terms or face a proxy war via a directors' board vote.

Regardless of intent, the maneuver effectively institutes a "poison pill" tactic that sours Yahoo as a prospect for Microsoft control by forcing the latter to invest in a company now involved with Google, which Microsoft considers the primary motivator behind its $31 per share offer for Yahoo. Shortly after the merger's late January announcements, rumors surfaced that Google contacted Yahoo about a possible alliance knowing that the Yahoo board of directors is determined to keep the company independent and to avoid Microsoft in particular.

Neither Google nor Microsoft has yet commented on the deal.

 
Previous Comments

F.U., Ballmer

04/09, 06:00pm reply

Yeah, your tough talk really scared Yahoo, didn't it?

Wouldn't it be great if Yahoo emerges in a stronger position from Microsuck's hostile offer?

climacs

Fresh-Faced Recruit

Joined: Sep 2001

0

Die MS!!!

04/09, 10:50pm reply

Please MS, keep doing what you're doing and you'll only hurt yourself. Please keep it up. The sooner the better.

manleycreative

Fresh-Faced Recruit

Joined: Sep 2005

0

Headline is backwards

04/10, 05:52pm reply

Yahoo tests Google AdSense, to 'poison' well

This comes much closer to describing the situation.

blacksmith_tb

Fresh-Faced Recruit

Joined: Mar 2008

0

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