Yahoo-Google ad pact raises antitrust eyebrows

flashl

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Fri Jun-13-08 06:52 AM
Original message

Yahoo-Google ad pact raises antitrust eyebrows

Source: SF Gate

(06-12) 19:54 PDT -- Yahoo Inc. ended talks with Microsoft Corp. on Thursday and teamed with rival Google Inc. in an advertising partnership that joins the two biggest Internet search engines - and raises antitrust concerns.

Under the agreement, Google will supply some of the advertising on Yahoo's search engine and other properties, giving Yahoo an estimated infusion of up to $800 million in additional annual revenue to bolster its slumping business. Yahoo plans to continue to sell its own search ads but will display them only when they garner more revenue than those sold by its new partner.

Jerry Yang, Yahoo's chief executive, called the Google agreement a good move for his company and shareholders. He alluded to Yahoo's five-month face-off with Microsoft, which proposed to buy the Sunnyvale Web portal for $47.5 billion and then to simply acquire Yahoo's search business - an idea that Yahoo's board rejected Thursday.

"Clearly, it is time to move on, and we believe that this agreement with Google does so by strengthening our competitiveness," Yang said.

SF Gate

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fasttense

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Fri Jun-13-08 07:00 AM
Response to Original message

1. Oh, whats a few monopolies in the US?

The gubermint has long ago stopped prosecuting for price fixing. If they hadn't then we couldn't have $4 a gallon gas today. ENRON would never have happened if corporations were actually regulated. It's just all part of the greed is good, free trade is the corporatist's friend and who needs no stinking regulations anyway republicans.

Remember the horrible downturn in the Chilean economy after Pinochet picked his successor and passed self-protective legislation? That is always the end result of Milton Friedman and free trade policies. Destruction of a stable economy. It's here, it's the bushes fault and it is going to get worse.

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Gman

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Fri Jun-13-08 08:37 AM
Response to Original message

2. Yang had to find a way to placate shareholders

who were upset that he turned down MS's $47.5 billion offer or else he was gone. Looks like he found a way. I don't know if the agreement will stand up in court, though.

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