Yahoo To Run Limited Test of Google Adsense For Search Service In The U.S.

Clive Lobo

Yahoo has announced this past week that it is going to run a very limited and short test of Google’s Adsense for Search Service in the U.S.

The Microsoft – Yahoo! merger drama got just a little more complicated last week when Yahoo! announced in a press release that they are running a very limited test of the Google Adsense for Search Service. It’s a short 2 week deal that would show Google Adsense results on 3% of U.S. searches only. According to the press release the test will apply only to traffic from in the U.S. and does not include their extended network of affiliate or premium publisher partners.

According to Yahoo! the test does not mean that Yahoo! will join the Adsense For Search program. They are simply testing out potential business relationships to maximize stakeholder value. Baloney!

In my opinion it’s obvious they are trying to shake up the talks with Microsoft in order to get a higher share price in the deal. Microsoft on the other hand is a strong negotiator and I doubt such a tactic will cause them to change their minds. In fact, Microsoft’s Brad Smith responded with the following:

“Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.”

I happen to agree with Microsoft on this one. A merger with them would provide a strong competitor to Google in the search marketplace – while a small merger with Google would only limit the competition. The question is will regulators weigh in on the merger talks and dictate what will happen? To date we’ve not seen much merger regulation on the Internet mostly because it did not have too much of an impact on world economies. That does appear to be changing slowly and I fully expect their to be some involvement in these talks.

So what do you think about these latest events? Is Yahoo! seriously considering partnering with Google? Or is it just a negotiating position with Microsoft?

Clive Lobo

Spark’s resident boss man, Clive possesses the very nature of an entrepreneurial spirit.

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