Thursday, April 17th 2008

Yahoo And Google To Move Ahead On Partnership

The trial Yahoo has been conducting to display Google ads in its search results has been judged a success, according to sources close to the companies, and Yahoo is set to move ahead on the partnership with its one-time biggest rival in an attempt to stave off Microsoft's $42 billion takeover offer. We mentioned on Monday that an alliance between Yahoo and Google could receive heavy criticism from US and EU competition regulators, both companies are now working on a solution. Perhaps such a solution would be to only allow Google to serve ads in certain categories or regions. Even though this would limit the cash flow boost to Yahoo, the company would still come out significantly richer in the end, perhaps by as much as $500 million a year. Yahoo is also in talks with AOL over a merger to further increase its cash flow.
Source: Tom's guide
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34 Comments on Yahoo And Google To Move Ahead On Partnership

#26
Polaris573
Senior Moderator
mdm-adphOther notable examples of favorable monopolies were those that used to exist in the oil industry (about a hundred years ago), airline industry and the telephone industry.
Standard Oil as a force for good? Bemusing...
In one example of Standard's aggressive practices, a rival oil association tried to build an oil pipeline to overcome Standard's virtual boycott of its competitors. In response, the railroad company at Rockefeller's direction denied the association permission to run the pipeline across railway land,[citation needed] forcing consortium staff to laboriously decant the oil into barrels, carry them over the railway crossing in carts, and pump the oil manually into the pipeline on the other side. When Rockefeller learned of this tactic, he instructed the railway company to park empty rail cars across the line, thereby preventing the carts from crossing his property.
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#27
Easy Rhino
Linux Advocate
RavenasI think what they are talking about is that Yahoo and Google are the two main advertisers on the internet and they are combining...In my opinion the government should AT THE LEAST look into this merger. Why? Because it's not just regular joes who search, certain people like my family's company use Yahoo for advertising because they are cheaper than Google...Now I'm not so sure we will have a choice on competitive pricing.
if google and yahoo merge then there will be even more drive for a company like microsoft to get competetive with online advertising. and there are a lot of smaller advertisers who would easily match what you were getting.
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#28
Ravenas
Easy Rhinoif google and yahoo merge then there will be even more drive for a company like microsoft to get competetive with online advertising. and there are a lot of smaller advertisers who would easily match what you were getting.
Yes, but Yahoo and Google are the number one search engines. The majority of the consumer base is on one of the two.
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#29
btarunr
Editor & Senior Moderator
Isn't this a rude nut-kick to Microsoft? :laugh:
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#30
Easy Rhino
Linux Advocate
RavenasYes, but Yahoo and Google are the number one search engines. The majority of the consumer base is on one of the two.
yea and if the prices go up then those people will search elsewhere. if the prices go down then the consumer will be even happier.
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#31
3870x2
Ehstiilol, MSN over google...

idk, to me its just, with MSN and yahoo and all those other engines they have 53458425463876345364 advertisements and stories and all this crap everywhere.

but you go to google and its a simple text box to type what you want. its simple.
Google just doesnt display adds until you search.
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#32
Dangle
btarunrIsn't this a rude nut-kick to Microsoft? :laugh:
It's a nutkick to Microsoft, yes, but Google will have your nuts in a lockbox.
Easy Rhinoif google and yahoo merge then there will be even more drive for a company like microsoft to get competetive with online advertising. and there are a lot of smaller advertisers who would easily match what you were getting.
Let's pretend you own a company.

Google guarantees your ads will be seen on One Million Trillion web pages.
Ads'R'Us guarantees your ads will be seen on one Thousand web pages for the same price.

Who would you adveritse with? We need 2 or more big companies at eachother's throats slashing prices and innovating technology.

Anyway, whatever happens, I'm glad it's a US company that will own the internet since it's quite necessary for a global economy.
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#33
Easy Rhino
Linux Advocate
DangleIt's a nutkick to Microsoft, yes, but Google will have your nuts in a lockbox.



Let's pretend you own a company.

Google guarantees your ads will be seen on One Million Trillion web pages.
Ads'R'Us guarantees your ads will be seen on one Thousand web pages for the same price.

Who would you adveritse with? We need 2 or more big companies at eachother's throats slashing prices and innovating technology.

Anyway, whatever happens, I'm glad it's a US company that will own the internet since it's quite necessary for a global economy.
i don't disagree that having two companies at eachothers throats is a good thing for the consumer. what i am saying is that in a free market there will always be another option. the small advertisers, if they want to survive, will have to offer some niche marketing. and if people don't like google having all the power then on principle they can buy ads from the smaller more expensive company. if enough people do that, then the prices of the small company go down.
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#34
Dangle
I definitely am an advocate for a free marktet, but this really is bad news for consumers.
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