Yahoo/Google deal to become permanent?

Yahoo's experimental Google AdSense deal could be rendered permanent within the next week, say alleged sources speaking to the Wall Street Journal. The search engine firm is said to be taking action after Microsoft's relative silence on whether it will launch a hostile takeover bid and is preparing an approach that would bring Yahoo closer to Google while opening the company to alternatives.

The agreement would see Google join a system that automatically picks the most profitable ad to display alongside search results, including Google ads, Yahoo's own, or ads from future partners. The move would effectively create an alliance between the two companies while alleviating antitrust concerns from the US Justice Department over the risk of an effective Google monopoly in web ad revenue.

Yahoo is widely known to be experimenting with Google's ad system as an attempt to thwart any hostile Microsoft acquisition attempt by both increasing its own financial standing, which would encourage Microsoft to raise its bid, as well as creating links with Google that Microsoft would be forced to retract if it wishes to compete directly against Google.

Filed under: industry
Other story tags: Microsoft, Google, Yahoo