Google-Yahoo Ad Pact Could be on Verge of Collapse

Authored by Mark Hefflinger on October 31, 2008 - 7:11am.

Mountain View, Calif. - More than four months after signing a major advertising pact with Yahoo, Google may be on the verge of calling off the deal, Reuters reported on Friday. Under the partnership, which could increase Yahoo's cash flow by as much as $450 million in the first year, Google would sell advertising for some of Yahoo's Web properties.

The deal, however, has been heavily scrutinized by both advertisers and federal regulators, who are concerned about antitrust issues, since the two companies together control more than 80% of the web search market.

"Are they more serious about walking away? Yes," an unnamed source told Reuters.

"Have they decided? I'm not sure."

Another source said that Google could announce the dissolution of the deal as early as Friday.

 

Related Links:
http://snipurl.com/4vpul (Reuters)

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.