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Gahoogle - Yahoo, Google Announce Ad Arrangement

Posted on 6.12.2008
Yahoo and Google announced yesterday a non-exclusive search advertising partnership. Under the deal, Yahoo will run advertising provided by Google alongside search results and on some websites. Yahoo will decide which search terms Google advertising will appear next to. It's probably safe to assume that Google advertising will be displaed for search terms in verticals that are not performing well at Yahoo - but that is at the discretion of Yahoo.

According to Rueters, the deal is estimated by Yahoo at $800 million in additional annual revenue that would boost cash flow by $250-$450 million in the first 12 months. Let the anti-trust speculation begin. Yahoo Shares (YHOO) fell 10% after the news was announced.
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