Early Today I posted a blog stating that Google and Yahoo were about to sign a deal. Well I have great pleasure to tell you that this deal have been confirmed by a number of news sites. As a Yahoo shareholder this is great news.According to a statement by Yahoo they expect to earn additional cash flow of $250 million to $450 million within a year of implementing Google's ads on its pages. Yahoo state that this deal will deliver financial value to stockholders and will help them to invest in broader strategy to transform display advertising and advance our starting point objectives with users.
Under the agreement, Yahoo will carry ads purchased by Google advertisers on terms and results pages of its choosing. It may also carry Google ads on non-search pages. The agreement lasts for up to four years, and consists of an initial four-year term followed by options for two three-year renewals.
Some have speculated a Google-Yahoo tie-up on search advertising could create a virtual monopoly for Google. But to me I think Google already have a monopoly, Google already controls nearly 70% of the online search advertising market.
