Google Pulls Out Of Advertising Partnership With Yahoo… Yahoo Be Screwed

You might recall that Google and Yahoo had planned to enter into a joint advertising deal and the feds were looking into the matter?

Well, the deal is off. Google is pulling the plug on this circus:

“After four months of review, including discussions of various possible changes to the agreement, it’s clear that government regulators and some advertisers continue to have concerns about the agreement,” he [David Drummond, senior vice president and chief legal officer at Google] said in the Google blog.

“Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners. That wouldn’t have been in the long-term interests of Google or our users, so we have decided to end the agreement.”

Needless to say, Yahoo is screwed. This deal was supposed to keep the forces of evil Microsoft at bay while making Carl Ichan happy at the same time. Without this deal, Yahoo now may feel more pressure to renew talks with Microsoft.

I wonder what Jerry Yang is thinking now.

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