Aplus.net Blog

Several news sites reported today that the long-in-the-making search advertising partnership between Yahoo and Google — which we’ve been following with interest here at the Aplus.net Blog because of the implications it has for the entire world of online commerce — was changed dramatically when the companies agreed to “scale back” the scope of the merger in order to improve their chances of federal approval.

According to Reuters international news service, the change was a last-minute attempt to salvage the deal after recent difficulties regarding regulators (and a large chorus of criticism from worried competitors) had Google on the verge of walking away from the negotiating table altogether.

The two companies have created a new agreement that adjusts the length of the partnership from ten to just two years, according to the report. This revised deal also “caps the percentage of search revenue that Yahoo can collect from Google at no more than 25 percent, and lets Google advertisers opt out of being placed on Yahoo.”

Industry watchers wondered whether the revised deal would any longer be much of a benefit to Yahoo, which is seeking to right itself after recent market difficulties and a somewhat aggressive interest from Microsoft to acquire the company.

What do you think? Would a Google - Yahoo merger hurt or help the online marketplace? Would you be concerned with the size of the new partnership, or would you be pleased to have both services under one roof? Sound off and let us know your thoughts.

Click here to read the report from Reuters.