Yahoo and Google Ad Partnership May Be Dropped

Posted Oct 30, 2008

The chances of the Yahoo! Inc. (NASDAQ:YHOO) and Google Inc. (NASDAQ:GOOG) advertising partnership happening is getting slimmer.  The two search engine companies have not be able to reach any sort of agreement with the Justice Department.  The two companies are rumored to just walk away from the deal altogether.  If companies and the Justice Department are able to come up with a solution, then it will probably take place sometime in the middle of next week.

The partnership was officially announced in June.  The partnership was originally devised as a way to downplay the acquisition offer made by Microsoft Corporation (NASDAQ:MSFT).

If the deal did take place, then Google would have been able to help Yahoo! generate millions of dollars by providing them with advertising inventory.  But if the deal doesn’t happen, Yahoo! shareholders will be upset and the pressure to have Jerry Yang removed from the CEO spot may increase.  His role as CEO has been highly questioned during the August 1st shareholder meeting.

AOL and Yahoo! are currently rumored to be in talks of a merger.