Wednesday, April 09, 2008

Google and Yahoo to share web ads

http://news.bbc.co.uk/2/hi/business/7339864.stm

It looks like Yahoo is looking to scare of Microsoft by allowing Google to place some search ads next to Yahoo search. There has been a lot of talk since Microsoft's bid that Yahoo should outsource its search advertising to Google. I don't really get this move. I could understand if Yahoo outsourced all its search to Google to raise its share price and make a takeover more difficult but what good does it do to have Google post a few AdWords ads for a limited two week engagement? Apparently, it raised Yahoo's share by 7% but even that I can't understand. So by outsourcing a few ads I guess that shows the two are talking and there's a possibility of Yahoo outsourcing its search to Google.

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