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Update: Google, Yahoo strike ad deal |
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Written by Daniel
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Friday, 13 June 2008 |
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The 10-year deal will feature Google advertising alongside Yahoo search results
By Nancy Gohring and James Niccolai, IDG News Service
June 12, 2008
InfoWorld The nonexclusive deal unites the online advertising businesses of Google and Yahoo and comes as a setback to Microsoft, which had been trying to acquire all or part of Yahoo to strengthen its own online business and compete better with Google.
Yahoo said it expects the deal to generate $250 million to $450 million in operating cash flow during the first 12 months, and that it represents an annual revenue opportunity for Yahoo of $800 million. The deal is for an initial period of four years, with an option for Yahoo to extend it for a further six years.
The deal was announced after Yahoo said earlier on Thursday that it had ended its talks with Microsoft over a possible investment by the software giant. Yahoo said it ended the talks because Microsoft was interested only in acquiring Yahoo's search business, not the entire company.
"Clearly it is time to move on," Yahoo CEO and cofounder Jerry Yang said during a conference call. "We believe this agreement with Google helps us to do so by strengthening our competitive position and generating attractive financial benefits." [InfoWorld...] [Comments...] |
