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Google Ad Deal Advances Yahoo’s Open Strategy

Jun 12, 2008  •  Post A Comment

Amid a potential shareholder uprising and plunging stock values, Yahoo made official a rumored ad-sharing agreement with Google.
Earlier today, Yahoo announced that discussions with Microsoft had officially ended following its unsolicited bid to acquire all or part of Yahoo in the months prior.
The nonexclusive Google deal enables Yahoo to run Google ads alongside its search results and on some of its American and Canadian Web properties, advancing Yahoo’s open strategy.
Yahoo will select the search term queries and the pages on which Google ad results will appear.
The agreement also applies to partners in the search engine’s publisher network.
In a statement released by Yahoo! Investor Relations Wednesday evening, CEO and co-founder Jerry Yang said, “We believe that the convergence of search and display is the next major development in the evolution of the rapidly changing online advertising industry. Our strategies are specifically designed to capitalize on this convergence—and this agreement helps us move them forward in a significant way. It also represents an important next step in our open strategy, building on the progress we have already made in advancing a more open marketplace.”
The agreement gives both Google and Yahoo the option to terminate the agreement in the event of a change in control of either party. Should Yahoo exercise this option, it will be required to pay a $250 million termination fee to Google.

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