Yahoo And Google In Non-Exclusive Search Ad Deal
As expected Yahoo has announced a non-exclusive ad pact with Google. In an announcement, the company says it has agreed with its arch rival to run ads against some search queries as well as other of its web properties. From the announcement: “Under the terms of the agreement, Yahoo! will select the search term queries for which – and the pages on which – Yahoo! may offer Google paid search results.”
The nonexclusive deal is aimed at giving a lift to Yahoo’s finances, and the company said it would generate an additional $250 million to $450 million in operating cash flow in the first year.
The agreement will also strengthen Google’s dominance over the lucrative search advertising market. It was signed after Yahoo rejected a proposal by Microsoft to acquire both Yahoo’s search business and a minority stake in the company. The rejection appears to end months of on-again, off-again negotiations between the two companies.
2008 RIP Yahoo!
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