Yahoo may be running Google AdWords quite soon as the two companies are growing closer in an effort to work together which will boost Yahoo’s goal of not being taken over by Microsoft.
Yahoo ran a test serving Google AdWords in their search results last month and the outcome was quite positive.
The Wall Street Journal reports :
Yahoo has also been pursuing a broad agreement to carry search ads from Google, which it views as a way to boost its cash flow and bolster its claim to shareholders that it’s worth more than Microsoft has offered. Such an agreement could still go forward even if Microsoft announced a hostile takeover effort.
While a broad search ad pact would likely attract intense antitrust scrutiny, the options Google and Yahoo are discussing include a nonexclusive arrangement that they believe could satisfy regulators, say the people familiar with the matter.
But isn’t Yahoo entering a bind with Google to escape the chains of Microsoft?
A non-exclusive arrangement is smart because it willl not bond Yahoo to Google permanently and still leaves room for the further development of the Yahoo Search Marketing interface, which Yahoo has to effectively transcend into a profitable and top tier venture in order to effectively compete for the long haul.
So with this agreement Yahoo would be displaying adwords ppc ads and its own Yahoo search ads side by side?
All of this is interesting considering Yahho just revamped their search marketing interface (Panama) recently and now all of this hullaboolo could eliminate it all together possibly. A Microsoft deal would surely be the end for Panama I would think no?
thanks
With this deal yahoo is going to have same fate as about.com . In short term, it may increase financial value. It is just going to be a content site and be irrelevant in long term.
It still does’nt seem like good news for YSM.