Yahoo and Google Announce Agreement

[janeth]

Looks like Yahoo has just released a press release saying Yahoo! will run ads supplied by Google alongside Yahoo!’s search results and on some of its web properties in the United States and Canada.

Yahoo! expects the agreement to generate an estimated $250 million to $450 million in incremental operating cash flow.

Breaking: Yahoo and Google Announce Agreement

[janeth]

Google just posted this on their blog

Official Google Blog: Our agreement to provide ad technology to Yahoo!

It is important to say what this agreement is not:

* This is not a merger. Rather, we are merely providing access to our advertising technology to Yahoo! through our AdSense program.

* This does not remove a competitor from the playing field. Yahoo! will remain in the business of search and content advertising, which gives the company a continued incentive to keep improving and innovating. Even during this agreement, Yahoo! can use our technology as much or as little as it chooses.

* This does not prevent Yahoo! from making similar arrangements with others. This arrangement is not exclusive, meaning that Yahoo! could enter into similar arrangements with other companies.

* This does not increase Google's share of search traffic. Yahoo! will continue to run its own search engine and advertising programs, and the agreement will not increase Google's share of search traffic.

* This does not let Google raise prices for advertisers. Google does not set the prices manually for ads; rather, advertisers themselves determine prices through an ongoing competitive auction. We have found over years of research that an auction is by far the most efficient way to price search advertising and have no intention of changing that.

[cw1865]

Hmm, thanks for the post, I guess I missed this story somehow! I am a little bit surprised, but if it adds to the bottom line of yahoo, I guess I understand....

[janeth]

Originally Posted by cw1865

Hmm, thanks for the post, I guess I missed this story somehow! I am a little bit surprised, but if it adds to the bottom line of yahoo, I guess I understand....

What really scares me is that Google seems to have gone to a lot of trouble to explain how it is all fair and good for everyone.

[janeth]

And then Yahoo tells Microsoft the talks are over

Yahoo! Inc. - Press Release

[incrediblehelp]

Who thought this was not going to happen?

[mark.smith]

I don't think that this one is going to help more to yahoo if they think so.......