Yahoo and Google Working Together?
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Could Google and Yahoo work together to fend off the merger that Microsoft seems ever more intent on pushing through?
As noted in an article earlier today, The Wall Street Journal revealed that a possible advertising partnership between Google and Yahoo could be in the future.
Under the potential agreement, which is still in the preliminary stages, Yahoo would outsource its online advertising to Google and display ads similar to Google Adwords on Yahoo’s search results pages.
According to the article, the two search engines have not formalized the agreement but the initial trial of the proposed program has been very successful so far.
Yahoo may be using this potential partnership in order to fend off Microsoft from attempting to take over the world’s second largest search engine.
Yahoo declined Microsoft’s most recent offer for the company after deciding that the Microsoft offer did not value Yahoo’s profit potential enough. Microsoft has responded by announcing that Yahoo has until April 26 in order to accept the deal or they would initiate a proxy fight to take over Yahoo by force.
This advertising sharing deal has the potential to have a large impact on Internet Marketers due to Adwords campaigns could possibly be spread between both Yahoo and Google and their respective search networks, effectively reaching approximately 75-80% of all searchers worldwide.
According to according to Citigroup Global Markets analyst Mark Mahaney the Google advertising deal could put an additional $1 Billion dollars a year into Yahoo’s pocketbook. That would make Yahoo shareholders think twice about giving in the the Microsoft offer.
At this point it is simply too early to tell how these talks between Yahoo, Google and Microsoft will develop.
Yahoo is currently also in talks with Time Warner in order to possibly merge Yahoo and AOL together into one company while Time Warner Inc. would retain a 20% share of the combined Yahoo/AOL company.
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