Google and Yahoo may be forced to abandon ad deal

SEARCH ENGINE GIANTS Google and Yahoo could be forced to abandon their joint search deal having thus far failed to sort things out with the US Department of Justice.

The Wall Street Journal and its secret sauces reckon the failure of GooHoo could even be announced by the middle of next week as discussions with regulators seem to have reached a dead end.

Earlier in October the two firms agreed to put their plans for an ad partnership on hold as advertisers raged and frothed at the mouth that the deal would monopolise the ad market and hike prices. Seeing as, together, GooHoo would own over 80 per cent of the Interwibble’s search market, they could well have a point.

Earlier this month, the companies said they had decided to delay implementing the controversial deal, struck in June, due to ongoing discussions with regulators.

The WSJ says both firms met again with the DOJ yesterday, but seemingly to no avail.

Yahoo was banking on the partnership with Google to protect it from the Vole and bring in a bit of spare cash, to the tune of some $250 million in revenue growth.

Now Yahoo may have to stake all its hopes on fellow flailing portal AOL, as the firm enters advanced discussions with Time Warner about buying up the unit’s content and advertising operations. µ

L'Inq
Wall Street Journal