Yahoo, Google Enter Ad Partnership

Ed Sutherland - AHN Editor

Sunnyvale, CA (AHN) - Soon after Microsoft officially buried its attempted takeover of Yahoo, the Internet company Thursday signed an online advertising agreement with Google, the software giant's nemesis.

Under the deal that could earn Yahoo $800 million annually, the No. 2 search site will display ads from Google alongside its own. The partnership could expand from search advertising to display ads.

Microsoft had been open to paying $7.73 billion to buy 16 percent of Yahoo, particulalry its search business, instead of attempting to acquire the entire company, the Wall Street Journal quoted insiders.

Although the software giant's takeover attempts appeared to fade into the background, the deal with Google gives either side the option of exiting should Yahoo change control. Yahoo President Susan Decker described the ad deal as a way for the Sunnyvale, Calif. company to strengthen is advertising and search offerings.

source: www.allheadlinenews.com