Feeds

Google! aborts! Yahoo! deal!

Advertisers and regulators win the day

The Power of One Infographic

Google is abandoning attempts to push through its ad-sharing deal with Yahoo!

The two sides put the deal on hold while it was investigated by lawyers from the Department of Justice. The agreement would mean Google provided adverts for Yahoo! properties. Lawyers were concerned any tie-up would give Google an effective monopoly in online advertising. Several attempts were made to reassure the DoJ, including a committment that Yahoo! would continue to sell its own ads, or would install some kind of monitoring system to check prices were fair.

Reading between the lines it seems that it was unhappiness from Google's advertising clients as much as concerns from the DoJ that caused the deal to die.

Google's policy blog said: "However, after four months of review, including discussions of various possible changes to the agreement, it's clear that government regulators and some advertisers continue to have concerns about the agreement. Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners ... But we're not going to let the prospect of a lengthy legal battle distract us from our core mission."

The post continues, somewhat bafflingly: "That would be like trying to drive down the road of innovation with the parking brake on." Quite.

The end of the deal leaves Yahoo! out in the cold, where it could again attract the attention of Microsoft.

Rebel shareholder Carl Icahn, now a board member at Yahoo!, is again mumbling about a resurrecting a search-only deal with Microsoft. Yahoo! shares are currently at $13.30, compared to the $33 a share Microsoft offered for the firm in May. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.