Yahoo! and Google Sends Revised Agreement To Justice Department
Google Inc. (NASDAQ:GOOG) and Yahoo! Inc. (NASDAQ:YHOO) was rumored to be dropping the advertising deal altogether, but today’s news says otherwise. The two search engine companies have submitted a revised agreement to the Justice Department that indicates Yahoo! would limit the revenue earned by the advertising partnership. The deal also caps the number of years that the two companies would partner with each other.
Yahoo! is depending heavily on the Justice Department’s approval of the deal. Yahoo! turned down a $47 billion acquisition check from Microsoft Corporation (NASDAQ:MSFT) to accept the Google advertising partnership deal. Carl Icahn, a board member and investor in Yahoo! reiterated his stance on the importance of working out a deal with Microsoft on CNBC this past Monday.
Yahoo! recently hired Jeff Dossett, former Executive Producer & General Manager at MSN media network to run their own flagship sites Yahoo! News, Yahoo! Finance, and Yahoo! Sports.
Another reason why this deal is important is because Yahoo! recently announced they are slashing 10% of their workforce. If the Google deal does not go through, that would not be good for company morale.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry