Yahoo! announces partnership with Google

Yahoo! will give away a portion of its advertising space to Google, in an experience that seems to have the goal of pushing away the unsolicited proposal from Microsoft. The agreement, announced on Wednesday (9), will allow Google to place ads in about 3% of surveys made in the United States through Yahoo – which is the second largest web search site behind the new partner.

Without specifying a date, Yahoo! reported that the tests of the partnership with Google will last two weeks. Yahoo! has stated that it has not yet decided whether to fully join the network of hundreds of other sites that rely on Google to explore advertising through sponsored links in its content.

The possibility of adopting a closer relationship with the internet search leader is a new display of Yahoo's efforts! to push away Microsoft or force the software giant to increase its offer.

Yahoo! insists that US initial offer$ 31 per action is too low, but Microsoft has not yet given concrete signals that it will make a better proposal.

Concentration

In a statement released today, the company founded by Bill Gates reaffirms that the current proposal is fair and questioned whether trade regulation agencies would allow Google and Yahoo! to form a permanent partnership.

According to recent data from comScore Media Metrix, Google and Yahoo! 81% of the search market in the United States would be together. If Yahoo! went into Microsoft’s hands, companies would have 31% of the US segment – well away from Google’s 59%.

"This [a Google-Yahoo agreement!] would make the market much less competitive, something that contrasts with our proposal when purchasing Yahoo!" says Microsoft legal affairs officer Brad Smith.

U.S. Senator Herb Kohl, a member of an antitrust committee in the U.S. Congress, claims that the body would reject any permanent agreement between the two Internet companies.

Kohl claims that the country’s legislators are particularly concerned about the issue because Google has just purchased DoubleClick, a major online advertising company, by US$ 3.2 billion.

[..Via Leaf Online..]


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