Yahoo One Step Closer To Google Ad Deal
ADOTAS – Yahoo Inc. is one step closer to outsourcing its search advertising biz to Google Inc. after an initial test of the system, the Wall Street Journal reports.
The ad partnership could give the increasingly desperate Yahoo some leverage as it attempts to send Microsoft Corp. and its unwanted advances packing. Industry watchers say the advertising deal is unlikely to permanently stymie a potential merger; many are also quick to point out possible antitrust concerns with a Google-Yahoo partnership, the Journal says.
If and when the Google-Yahoo ad deal goes through, it could send more than $1 billion a year into Yahoo’s coffers, the Journal quotes Citigroup Global Markets analyst Mark Mahaney as saying. The dollar signs could also sweeten a potential merger between Yahoo and Time Warner’s AOL, since Time Warner would receive a 20% stake in the entity.
The search ad partnership would also allow Yahoo to focus on other areas of its business, like interactive brand advertising.
Many are holding their breaths until April 22, when Yahoo is set to report its first-quarter earnings.
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