Google ends ad deal with Yahoo

November 5, 10:40 AMBusiness ExaminerDarrell Proctor

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Yahoo was counting on the deal to boost
its annual revenue by $800 million.

Google has decided to give up on its planned online advertising partnership with Yahoo, apparently deciding its attempt to keep the deal alive by agreeing to the demands of antitrust regulators was not worth it.

Government regulators had said a Google-Yahoo pairing would give Google - already an Internet behemoth - too much power over online commerce.

Yahoo pushed for the deal in order to improve its financial situation. The company had said a deal with Google could increase its annual revenue by $800 million. Yahoo also wanted a way to appease shareholders who remain upset about company management's decision to rebuff a $47.5 billion offer for the company from Microsoft earlier this year.

The Dept. of Justice had said it would sue to block a Google-Yahoo pairing. Said Thomas Barnett, an assistant attorney general for the department's antitrust division: "The arrangement likely would have denied consumers the benefits of competition ... lower prices, better service and greater innovation."