Google enters Yahoo ad pact

[asha]

Google gets mileage in Microsoft-Yahoo fallout; Google enters Yahoo ad pact


Microsoft hooked the bait and Google caught the big fish ‘Yahoo’. The six month long drama to deal with Yahoo’s advertising space has ended and Google grabs the scene by entering a pact in taking over the search assets of internet pioneer Yahoo. The much hyped ‘Thursday’s agreement between Yahoo and Google’ has made Microsoft to bite the bullet in its deal move with Yahoo. All it began in January as Microsoft moved dice to make a deal to have access on Yahoo’s advertising space, all efforts turned futile and it paved the way for the internet’s most powerful company Google to gain even more dominance through the deal giving access to large chunk of Yahoo’s advertising space. With this deal Google has not only gained search advertising space of Yahoo, but kept out a potentially valuable weapon from Microsoft’s control. Microsoft responded to this deal in a paper released from its press department as ‘that deal would start to consolidate over 90% of the paid search advertising market in Google’s hands, this will make the market far less competitive’. The paper also emphasized on a host of legal and regulatory problems lie ahead for Google and Yahoo. Google retorted through a blog posting last Thursday that the deal would be ‘good for competition’. Google and Yahoo made it clear that though the deal need not require regulatory approval, they have submitted it voluntarily for review by the US Department of Justice anyway.

Competition concerns

No doubt the deal will strengthen Google’s already dominant position in search advertising as Google has about 75% of the U.S search advertising market followed by Yahoo at 9% (source: emarketer Inc.). The million dollar question bangs the internet marketing industry is ‘will the competition concerns law in U.S. make or mar the deal between the two technology giants and direct competitors for internet advertising and search services? US justice department and lawmakers are expected to take a close look at the pact to make sure it doesn’t give Google too much power over the internet search advertising market. Google and Yahoo have agreed to wait late September to begin functioning together so the U.S government has enough time to analyze the potential impact of the deal.

Bloggers concerns
When Microsoft started the move to make deal with Yahoo, bloggers had already started writing on “Microhoo”, so it is time to start blogging on “Goohoo”.

Thanks
Asha