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Yahoo Reaches Google Advertising Deal

No sooner had the news that Microsoft and Yahoo! were no longer talking hit the web, the follow-up emerged. The much rumoured deal between Yahoo! and Google has been announced and sealed.

Expanding on the 2 week trial between the two companies (Yahoo! and Google), Google adverts will now appear next to Yahoo! search results in a system where both companies adverts will be put against each other in an auction style system. This makes the whole process easier to avoid anti-monopoly regulations.

The deal is expected to mean revenue at Yahoo! increases by $800 million eventually, with a cash flow increase of between $250 million and $450 million within the first 12 months.

Carl Icahn could not be reached for comment as to his position on this and how this would affect his (now seemingly impossible) plans to remove the board and sell Yahoo! to Microsoft.

Something tells me this still isn't the end of this battle.

View: Yahoo!

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