Yahoo close to Google ad-deal

 

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By Stuart Turton

Posted on 2 May 2008 at 09:18

Reports suggest that Yahoo is close to signing an ad deal with Google, which would see it carrying Google advertising alongside its own search results.

In an effort to offset likely anti-trust concerns the report claims the deal would be non-exclusive and based on a real-time auction system, which would choose the most lucrative ads from a range of vendors to serve up alongside each search query. This could eventually mean Google ads would be served up alongside Microsoft and other competitor ads, the Wall Street Journal is reporting.

Such a partnership would not preclude a deal with Microsoft, according to the report.

Any such deal would undoubtedly rile Microsoft, which is reportedly leaning ever closer to a hostile takover of the company, though Steve Ballmer maintains that Microsoft may yet walk away from the bid.

The Wall Street Journal is reporting that an announcement on Microsoft's next step is imminent, with both sides seemingly entrenched in their positions, though neither side is willing to comment.

Microsoft had its $42 billion bid for Yahoo rejected by the company as too low, before giving it three weeks to decide and threatening it with a proxy battle. That deadline has now passed, however, with no move from either company.

Microsoft was reportedly considering raising its bid to around $33 a share, though it refused to move up to the $35 to $37 a share Yahoo lobbied for.