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Yahoo/Google speed dating bears fruit

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Yahoo/Google speed dating bears fruit

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Internet search engine rivals Yahoo and Google have agreed a deal to share advertising technology. The arrangement means some Google ads will share web pages with Yahoo search results, maximising both services for the viewer.

The deal means Yahoo will allow Google to put ads on its site in what Yahoo executives called a 500 million euro annual revenue opportunity, boosting cash flow by 158 million euros in the first 12 months. Yahoo’s and Google’s ads would be pitted against each other in an auction style process that could make the deal easier to get regulatory approval if needed.

The announcement follows Yahoo’s failure to persuade Microsoft to renew its proposal to buy the internet company in its entirety.Yahoo then rejected a bid by Microsoft to buy its online search business only. Microsoft had hoped a Yahoo deal would accelerate its ability to capitalise on web advertising growth and compete with Google, the web’s most successful search engine.