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Nov 4 2008

Yahoo Google Throws a Few Bones at DOJ to Get Away With the Search Deal

Bilal Hameed 

yahoogoogle1 Yahoo Google Throws a Few Bones at DOJ to Get Away With the Search Deal

Yahoo and Google have changed their search partnership proposal in order to lure DOJ into rubber stamping the deal, as reported by WSJ. The new provisions have shortened the deal duration to 2 years instead of the ten years that were initially proposed. In addition to this a revenue cap of 25% of Yahoo’s overall search revenue has also been imposed on the deal. According to WSJ:

 

Yahoot Yahoo Google Throws a Few Bones at DOJ to Get Away With the Search Deal Inc. and Googlet Yahoo Google Throws a Few Bones at DOJ to Get Away With the Search Deal Inc. have sent the Justice Department a revised version of their search-advertising agreement, adding a number of new provisions designed to limit the scope of the deal as they scramble to get it past regulators, according to people familiar with the matter.

The new plan, which the companies submitted over the weekend, shortens the original agreement to two years from ten years and caps the revenue Yahoo can generate from the deal to 25% of Yahoo’s search revenue, according to these people. Previously, there was no revenue cap. It also specifies that Google advertisers can opt out of having their ads displayed on Yahoo sites.

The ambitions here are to somehow get the deal done, and than try figuring out the kinks to extend it further at a later period in time.

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