Google Kills Yahoo Deal

You know, I was actually looking forward to the Google-Yahoo search ad deal. Becoming an AdSense publisher would have earned Yahoo $800 million a year, unburdened their ad salesforce, and allowed them to focus on what they do best: portals and APIs. With Yahoo laying off ten percent of their workforce, that’s exactly what they need right now: revenue and focus.

Unfortunately for Yahoo, Google just killed the deal.

…after four months of review, including discussions of various possible changes to the agreement, it’s clear that government regulators and some advertisers continue to have concerns about the agreement. Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners. That wouldn’t have been in the long term interests of Google or our users, so we have decided to end the agreement.

Microsoft tried to buy Yahoo earlier this year. This Google deal helped fend off that hostile takeover bid. Now that the deal’s off, wonder if Ballmer will come knocking again. With Yahoo stock trading at a dismal $13.97, way down from Ballmer’s $31 offer, it would be a steal.

(Image by TechCrunch.)

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