Google backs out of Yahoo ad deal over antitrust pressure NEW YORK, November 6 (RIA Novosti) - Google Inc. pulled out of a major advertising deal with Yahoo! Inc. after U.S. antitrust authorities threatened legal action. Under the agreement reached in June, Google would have placed its advertisements alongside Yahoo search results, bringing Yahoo around $800 million in additional annual revenue. The U.S. Justice Department told the two companies on Wednesday morning it planned to file a suit against the deal.
"The arrangement likely would have denied consumers the benefits of competition - lower prices, better service and greater innovation," a department press release said. Google backed out of the deal later in the day, saying it was unwilling to face a legal battle. David Drummond, chief legal officer at Google, said on a company blog: "it's clear that government regulators and some advertisers continue to have concerns about the agreement." "Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners. That wouldn't have been in the long-term interests of Google or our users, so we have decided to end the agreement." News that the agreement had fallen through sent Yahoo's shares up 10%, on rumors that it would accept a takeover bid from Microsoft, but sources close to the companies denied the reports. Microsoft offered $33 per share for Yahoo in an unsolicited takeover bid in May, well above the current share price of around $14. Analysts have also suggested Yahoo may be forced to merge with AOL. http://en.rian.ru/world/20081106/118151817.html
"The arrangement likely would have denied consumers the benefits of competition - lower prices, better service and greater innovation," a department press release said. Google backed out of the deal later in the day, saying it was unwilling to face a legal battle. David Drummond, chief legal officer at Google, said on a company blog: "it's clear that government regulators and some advertisers continue to have concerns about the agreement." "Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners. That wouldn't have been in the long-term interests of Google or our users, so we have decided to end the agreement." News that the agreement had fallen through sent Yahoo's shares up 10%, on rumors that it would accept a takeover bid from Microsoft, but sources close to the companies denied the reports. Microsoft offered $33 per share for Yahoo in an unsolicited takeover bid in May, well above the current share price of around $14. Analysts have also suggested Yahoo may be forced to merge with AOL. http://en.rian.ru/world/20081106/118151817.html
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