Thursday, May 22, 2008

Second Request Alert: Is the Microsoft-Yahoo engagement over after Yahoo caught sleeping with Google?


"How can Google, the Internet search and advertising giant, contend that teaming up with Yahoo in search ads would not invite an antitrust challenge?
Under a proposed partnership, Google would let Yahoo use its more sophisticated ad technology to deliver ads next to some Yahoo search results. By some estimates this could bring Yahoo $1 billion a year in added cash.
If they strike a deal, the No. 2 company in search ads would hand over some of its business to the dominant company in that market. When asked about the issues this would raise in a meeting with reporters this month, Eric E. Schmidt, Google’s chief executive, offered only a cryptic reply: “We would anticipate structuring a deal to address antitrust concerns.”
People involved in shaping Google’s approach say the deal under consideration would be a straightforward supplier arrangement, similar to ones in the markets for computer printers, appliances and cellphone service."

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