Amid growing concern, Google and Yahoo! both announced the planned Google – Yahoo! alliance will be delayed. Both companies released similar statements, with Google saying, “When we announced our advertising agreement with Yahoo in June we agreed to delay its implementation until October to give regulators time to look at the details. As we are still in conversation with the Department of Justice we have agreed to a brief delay in implementing the agreement while those discussions continue.”
This is not too surprising based on the increasing opposition this deal continues to face on various fronts. I knew the anti-trust investigation was serious back in July when the Department of Justice contacted us here at JumpFly. Some big organizations in opposition include the World Association of Newspapers, which represents over 18,000 newspapers, and the Association of National Advertisers (ANA), which represents over 400 companies and 9,000 brands (view previous article and video about this).
Looks to me like this deal is likely not going to ever happen. Google and Yahoo’s combined search market share would be a staggering 83%, a number that more and more parties are not comfortable with. The immediate loser that comes to mind here is Yahoo! as they stood to gain an additional $800 million per year in revenue from this deal. Ouch. However, this was a strange agreement anyway, where two arch- rivals were looking to work together. One winner here is Microsoft, who is hanging on to 8% share of the search market and trying to avoid elimination from the search engine marketing arena. They would love to see this deal permanently tabled. Time will tell, but for now, no deal.
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