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Friday, March 18, 2011

Yahoo Advertising


    Google has withdrawn from its agreement with Yahoo's controversial declaration this morning because of fears of "a lengthy legal battle" with federal regulators for antitrust and the State concerned about the impact of this transaction in the market on the Internet.
    Decision to end the quest for a period of four months to obtain regulatory approval and a broader attempt to keep Yahoo out of the hands of Microsoft rival Google. Led the charge against the software giant announced the deal on the Internet, to stir opposition among advertisers and raised fears within the Bush administration and Congress on the potential impact of a partnership between the search engines Top Mon
    With the deal has already been delayed and then revised and hopes to overcome the strong concerns from the Justice Department, Google announced in a blog post this morning was pull the plug because those steps were not enough for ...
    Secure regulatory approval. Said David Drummond, Google's head legal officer and vice president of corporate development, and:

        We believe that the agreement was good for publishers, advertisers and users - and, of course, for Yahoo and Google. However, after four months of the review, including discussions of various possible changes to the agreement, but it is clear that government regulators and some advertisers still have concerns about the agreement. Before pressing the risked not only a long legal battle but also the damage to relations with partners, customers. If not in the interest of long-term from Google or users, so we decided to terminate the agreement.

    Yahoo said Google said it had notified of the decision to end the proposed agreement, through which groups would be mediated by some text ads for search engine Yahoo, "after the statement from the Ministry of Justice that it would seek to block it, despite the revisions Yahoo proposed to address the concerns of the Ministry of Justice's ".
    Reduce the particular importance of the impact of Google's decision on its future. But Wall Street clearly believes Microsoft may return to the image and trying to revive the part or all of Yahoo. Despite the collapse of the Yahoo deal said that the increase in annual revenues by hundreds of millions of dollars, and was traded more than 4%, about $ 13.90 in early trading after the announcement. The company said in Sunnyvale, California, in a statement:

        While the implementation of a service agreement with Google would be enabled to accelerate private investments in the priorities of big business by injecting additional operating cash flow, and this was the deal gradually with the road map product Yahoo does not change to Yahoo's commitment to innovation and growth in the search. Put the basic building blocks of the strongest in all of the research sponsored by Yahoo and my place in a separate agreement.

    The Justice Department said it has major concerns over this deal.
    Decision of companies to abandon their agreement removes the competitive concerns that were identified during our investigations and eliminates the need for enforcement action, "said Thomas O. Barnett, who oversees the Department of Management antitrust, and this morning." Arrangement is likely to be denied the benefits of lower consumer prices than the competition, improve service and increase innovation.
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