Yahoo Becomes Adsense Publisher
Yahoo Becomes an Adsense Publisher For Two Weeks!
Good morning readers - One of the first to have the announcement MediaViper.com notes that Yahoo said Wednesday, that they will begin a test running Google ads alongside Yahoo.com’s organic search results.
The two-week trial run of Google’s AdSense for Search service will be limited to no more than 3% of Yahoo search queries, & will not include the company’s network of affiliate or premium publisher partners.
The move leads to speculation that Yahoo is trying to forge a stronger alliance with Google.com which Yahoo hopes will increase efforts to resist Microsoft’s hostile takeover attempt. The move was made following discussion the two companies held about Yahoo potentially outsourcing search ad sales to Google.
Yahoo basically becomes a publisher of Google Adsense yet unlike the rest of us Adsense publishers, likely to earn a majority of the revenue generated within any arrangement.
In announcing the ad test with Google Wednesday, Yahoo re-stated that thier board members are continuing to review their options to maximize stockholder value, including exploration of potential commercial business ventures.
Yahoo also went on to say “the testing does not necessarily mean that Yahoo will join the AdSense for Search program, or that any further commercial relationship with Google will result.” Yahoo also said it would not comment further on the nature or timing of any potential relationship.
Microsoft, just a week ago warned that it would lower its offer price if Yahoo didn’t come to an agreement on the proposed merger, within three weeks time, and immediately raised antitrust questions about Yahoo’s ad test with Google.
“Any agreement between Google & Yahoo would consolidate over 90% of the search advertising market in Google’s hands,” said Microsoft in a statement. “This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo.”
U.S. Sen. Herb Kohl (D-WI), chairman of the Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy and Consumer Rights, voiced his thoughts on the Yahoo - Google venture, further vindicating Microsofts stance.
“We will be following closely the results of the short-term test alliance between Yahoo and Google,” he said in a statement. “Should there be moves to make this agreement permanent, we will examine it closely in the Antitrust Subcommittee to ensure that it does not harm competition.”
Yahoo’s board of directors has rejected Microsoft’s $31-a-share offer as “substantially undervaluing” the company, in its response Monday to Microsoft’s ultimatum. In exploring alternatives to a Microsoft acquisition, Yahoo has had discussions about a possible deal with companies including News Corp. and Time Warner Inc.
Two sources, paidContent and Silicon Alley Insider were reporting late week that Yahoo is in serious talks with Time Warner, which may see a Yahoo-AOL merger agreement which could be announced as soon as next week. A Yahoo-Google search partnership would only sweeten the deal, with Google already owning a 5% stake in AOL. Whether that deal will actually come together remains unclear.
Yahoo could possibly see its’ ad trial with Google, will push Microsoft to boost its offer price. Earlier on Wednesday, a large Yahoo investor criticized Microsoft for threatening to lower its bid.
