Yahoo clings to Google to fend off Microsoft

 

"Yahoo! Inc., a leading global Internet company, announced today that it will begin a limited test of Google Inc.'s AdSense for Search service, which will deliver relevant Google ads alongside Yahoo!'s own search results. The test will apply only to traffic from yahoo.com in the U.S. and will not include Yahoo!'s extended network of affiliate or premium publisher partners. The test is expected to last up to two weeks and will be limited to no more than 3% of Yahoo! search queries."

Microsoft's Steve Ballmer is crying foul and threatening to block any large scale deal between Yahoo and Microsoft. My question is, "Why would Yahoo not be allowed to give up on their search efforts?" This isn't a merger, it's a strategic decision which will likely realize value for Yahoo! shareholders. The government shouldn't block it. If it results in Google monopolizing search advertising, it was natural much in the same way iPods became a monopoly. Google was simply better.

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