Yahoo! and Google agree deal

Unable to persuade Microsoft to reconsider its purchase offer, and unwilling to sell its online search business separately, Yahoo! has agreed a deal in which Google ads will┬áappear alongside Yahoo! search results in the US and Canada.   ┬á Yahoo said the agreement with Google could be worth up to $800 million in additional revenue every year. ┬á┬á "This commercial agreement provides Yahoo! with the opportunity to deliver more relevant ads to users and provide advertisers and publishers with better advertising technology," said Eric Schmidt, Google chairman and chief executive. ┬á┬á Yahoo! chief executive Jerry Yang said "we believe that the convergence of search and display is the next major development," in online advertising. ┬á┬á The partnership will initially last for three years, but could last up to ten years if Yahoo! decides to renew. ┬á┬á Google said the deal did not need regulatory approval but that it would delay its implementation by up to three and a half months to give the US Department of Justice a chance to review it. ┬á┬á Recent talks with Microsoft concluded after Yahoo! rejected a proposal to buy just its online search business. ÔÇ£In the weeks since Microsoft withdrew its offer to acquire Yahoo!, the two companies have continued to discuss an alternative transaction that Microsoft believes would have delivered in excess of $33 per share to the Yahoo! shareholders," Microsoft said in a statement. ┬á┬á "This partnership would ensure healthy competition in the marketplace, providing greater choice and innovation for advertisers, publishers and consumers," the company said. ┬á┬á But Yahoo! was reluctant to sell off only one part of the business, because it "would not be consistent with the company's view of the converging search and display marketplaces". ┬á┬á Microsoft has allegedly gone off the idea of a full takeover because Yahoo! has been "underperforming" and losing some of its key staff.   ┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á ┬áRead each company's statement in full by clicking the links below.Yahoo! to Strengthen Competitive Position in Online Advertising Through Non-Exclusive Agreement With GoogleYahoo! Announces Microsoft Talks Have ConcludedGoogle agreement to provide ad technology to Yahoo!┬áMicrosoft Issues Statement Regarding Yahoo!┬á