Yang gets Google'd
Internet Marketing
13 June 2008
Jerry Yang, chief executive officer and co-founder of internet company, Yahoo!, has agreed to allow Google ads on his company's web properties.
His deal with the US and UK's leading search engine, will see it run ads alongside Yahoo!'s search results and on some of its US and Canadian web properties.
Mr Yang said his company believe the convergence of search and display is the future of the online ad industry.
"Our strategies are specifically designed to capitalize on this convergence," he commented, "and this agreement helps us move them forward in a significant way".
The deal is expected to increase the company's income from online search - Yahoo! considers the agreement to be worth approximately $800 million (£400 million) annual revenue.
Yahoo! expects the agreement to generate an estimated $250 million (£125 million) to $450 million (£250 million) in incremental operating cash flow.
"This agreement provides a source of funds to both deliver financial value to stockholders from search monetization and to invest in our broader strategy to transform display advertising and advance our starting point objectives with users," said Yahoo! president Sue Decker.
The LA Times technology blog has reported Microsoft could oppose the deal on anti-trust grounds.
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