Google Yahoo! Failed Partnership

yahoo google merger 2008

Instead of challenging antitrust concerns posed by the U.S. Department of Justice, Google recently pulled out of the deal it made with Yahoo! in June to feature Google advertisements on its web pages. In an email sent to Yahoo! advertisers, the Executive Vice President of Yahoo! U.S., Hilary Schneider, expressed disapointment in the decision and then concluded the email with reassurance that Yahoo! will continue to improve the quality of its search engine and online advertising services:

“We wanted to reach out to you directly regarding Google’s decision, announced earlier today, to terminate the advertising services agreement that the companies announced in June. Yahoo! continues to believe in the benefits of the agreement, and is disappointed that Google has elected to withdraw from the agreement rather than defend it in court. Google notified Yahoo! of its refusal to move forward with implementation of the agreement following indication from the Department of Justice that it would seek to block it, despite Yahoo!’s proposed revisions to address the DOJ’s and advertisers’ concerns. While disappointed by this turn of events, we are writing to you to reaffirm our commitment to working together to drive your advertising results, and to provide the continued leadership you expect…”

Does this mean a Microsoft+Yahoo deal may be back on the table? In February, Microsoft expressed interest in purchasing Yahoo! and in a comment made on Wednesday, Yahoo CEO Jerry Jang said “I believe the best thing for Microsoft to do is to buy Yahoo.”

Read more:
Without Google’s help, Yahoo’s options limited
Google-Yahoo: Unintended Consequences
Microsoft and Yahoo! Partnership Possibility (May, 2008)

-Stacie Leonard, Ecommerce Marketing/Copywriting

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