Feeds

Yahoo! to post Google ads on Yahoo!

Take that, Ballmer

Choosing a cloud hosting partner with confidence

Microhoo The next time you search Yahoo!, you may see a Google ad. And Steve Ballmer isn't too happy about it.

This afternoon, the world's second largest search engine announced that at some unspecified moment, it will begin a test of Google's AdSense for Search service. This will post Google-brokered ads alongside Yahoo! search results.

The test will last for no more than two weeks, and it will affect no more than three per cent of all Yahoo! search queries - all in the US. It will not affect Yahoo!'s affiliate sites - only yahoo.com.

According to Wall Street Journal - which leaked the story earlier today - this is part of an effort to "boost Yahoo's leverage in its ongoing takeover standoff with Microsoft". And The Journal's take was echoed by a subsequent Yahoo!'s press release - though the release didn't mention the Redmond software giant by name.

"As previously announced, Yahoo!'s board of directors is exploring strategic alternatives to maximize stockholder value, including exploration of potential commercial business arrangements," the press release reads. "The Company noted that the testing does not necessarily mean that Yahoo! will join the AdSense for Search program or that any further commercial relationship with Google will result."

On February 1, Microsoft bid $44.6bn for Yahoo!, and on Monday, Steve Ballmer and company threatened a proxy fight if Yahoo! doesn't succumb within three weeks.

Yahoo! said it will not provide further comment on its Google AdSense test. But you could view this as an indictment of the company's Panama search advertising engine. Introduced just last year, Panama was meant to mimic The Google Way. But it hasn't, delivering significantly fewer dollars per search query.

Even before Microsoft entered the picture, according to The Journal's sources, Yahoo! was negotiating with Google over search advertising in Europe.

Of course, Yahoo!'s main objective is to thumb its nose at Microsoft.

Google has questioned whether a Microsoft-Yahoo! marriage would hamper market competition. But a partnership between Yahoo! and Google would raise similar questions - as Microsoft pointed out in a statement just released to the web:

Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.

So we're well on our way to one of those Google-Microsoft spats where each accuses the other of inappropriate behavior. ®

Microsoft's bid for Yahoo! - the story so far

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
French 'terror law' declares WAR on the INTERNET itself, say digi-rights folks
Liberté, Égalité, Fraternité: Two out of three ain't bad
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.