Google and Yahoo Try Again for a Partnership

Regulatory hurdles are preventing Google and Yahoo from moving forward with their advertising partnership. For Yahoo especially, this collaboration has become a necessity. An alternative plan is being presented:

“Google and Yahoo! have made last-minute proposals to scale down their Internet advertising partnership in a bid to appease anti-trust regulators.

The companies offered concessions over the weekend to the US Justice Department, which is threatening to block the alliance, according to a report in The Wall Street Journal.”

link: Google and Yahoo! revise ad deal terms

The volatility in the stock market and the downturn in the economy have impacted Yahoo. In October, Yahoo announced plans to reduce staff by ten per cent. For Yahoo, the advertising revenue from its partnership with Google may be one of the few remaining barriers to prevent Microsoft from making another acquisition attempt. Yahoo knows that it is now more vulnerable to an overture from Microsoft. Further delays give Microsoft the advantage.

Catherine Forsythe