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Google abandons partnership with Yahoo

Search engine giant Google has abandoned its advertising partnership with Yahoo because of an antitrust lawsuit due to be filed by the American justice department.

The two companies began an experiment of placing Google ads within some of Yahoo’s search results in April this year.

Yahoo announced that the tie-in with Google would be worth $800m annually and would generate between $250-450m in incremental operating cash flow.

Yahoo released a statement saying it was, “disappointed that Google has elected to withdraw from the agreement rather than defend it in court.”

The justice department brought the antitrust lawsuit because the two companies account for over 90% of search advertising and it believed the deal would have been unfair to the competition.

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Post Date: November 6th, 2008