Yesterday’s news regarding the talks breaking down again between Yahoo and Microsoft leads very nicely into today’s news that Yahoo will be displaying Google ads on select portions of its site. Yahoo estimates about $800 million in revenue from this deal and if the regulators bless it it will be good news for Google.
It is obvious Microsoft is threatened by Google and moreover they have suggested the search leader is a monopoly. This new agreement between the world’s first search engine and most-popular search engine will just add to Microsoft’s concern about Google.
Although Yahoo shareholders are hurt in the short-term by Yahoo’s decision not to sell to Microsoft, it would appear that Yahoo got the message and has taken a bold step to increase profits. This could be a good sign for the future but I continue to hear stories about how there is a culture of complacency at Yahoo and if this hasn’t changed as a result of this ordeal, shareholders will be long-term losers as well.