Google pulls out of its proposed ad agreement with Yahoo

07 November, 2008

Google has decided to end the ad agreement it signed with Yahoo in June 2008, following anti-trust opposition from the US Justice Department. The agreement, if implemented, would have given Yahoo the option of using Google to provide ads on its websites and its publisher partners' sites in US and Canada.

“We feel that the agreement would have been good for publishers, advertisers, and users -- as well, of course, for Yahoo and Google,” David Drummond, senior vice president, corporate development and chief legal officer, Google, has 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,” David Drummond has added.

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by Reporter At Large on 07 November, 2008

Submitted by Reporter At Large (not verified) on Fri, 11/07/2008 - 16:52.

This is the most self destructive move that Jerry Yang and his team of foolish advisors did when they rejected MSN's bid to buy Yahoo. Sometimes I wonder if they did this to scare MSN away since MSN wanted to buy Yahoo to fight Google and Yahoo thought this would be a smart move to fend off MSN.

Sure they did fend off MSN but what a mess this has been!!!

They lost the 44.6 Billion Dollar offer that MSN had bid, they somehow managed to calm Carl Ichan, got their board seats secured and after all this, Yahoo markets got hit, advertiser spends went down and who suffers? Yahoo!!!!

In the process they have lost a lot of senior pros in the organisation globally, largely US.

So dumb to have rejected MSN's offer.

Who won? The smart ones at Sunnyvale, not Yahoo but its neighbour Google!!!

Even MSN might now in the hind sight be saying we did the right thing of not buckling to Yahoo's demand. If they come in now they would not offer anything more than 30 Billion keeping in mind that Yahoo is tottering at 13.92$ and the 44.6 Billion was offered when it was on 19$.