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.


