Yahoo! and Google announce search deal

Yahoo! and Google are announcing the signing of a deal that will see Google ads displayed alongside Yahoo! search results and on other Yahoo! online assets.

The move follows the definitive closure of takeover talks between Microsoft and Yahoo! and is seen as a way for Yahoo! to bolster support that has flagged in recent months due to boardroom acrimony and negative publicity.

The deal is non-exclusive, with Google ads served alongside those produced by Yahoo!’s internal Panama ad system and those from third pary providers, and Yahoo! says it expects the agreement to pass regulatory hurdles as it does not create an anti-competitive entity.

Yahoo! says the deal is expected to bring in between USD250-USD450m in the first year of operation, with up to USD800m a year in revenue expected once it is established.

The agreement will see Yahoo! will select the search term queries and pages for which Google may acquire paid search results, with the selection balanced by the results served from Panama and other advertisers, and will only apply to paid search and content match results, not algorithmic searches.

Yahoo! chief executive Jerry Yang says the deal is the first step in Yahoo!’s new ‘open’ strategy and will provide revenues to invest in other areas of expansion.

Published by Reinout te Brake

Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry. Check out his games podcast;

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