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 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.