Google Bails Out on Yahoo

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Yahoo Offices

Google has announced they will no longer go ahead with the advertising partnership with Yahoo that they were negotiating on.

The discussions started this June, after Microsoft had announced they do not want to buy Yahoo anymore.

As consequence, Yahoo went to Google with the proposal of an advertising partnership, which meant that Yahoo would be displaying Google’s ads.

This deal was only available for the US and Canada, for a period of 4 years, and it would have brought Yahoo approximately 800 million dollars every year.

The competition authorities have said they would be analyzing this deal very thoroughly; and they did. In October, they had already imposed a temporary delay of the deal, and this week they have changed the terms under which they would accept it.

The deal could only last maximum two years, Yahoo could only receive from Google a 25% of the profits obtained as consequence of the deal; moreover, the customers who advertised in Google could ask not to appear in search lists made in Yahoo searches.

Google have announced that they cannot accept these terms and regret this could not happen, as they think it would have been a good thing for all those involved.

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