Print 9 comment(s) - last by Omega215D.. on Sep 18 at 8:34 PM

Eric Schmidt says the deal needs no approval of any sort to continue

Yahoo is grasping at any straw it can find to help keep its sinking stock prices afloat -- as long as the straw doesn't come from Microsoft. Yahoo and Google have agreed to a partnership for advertising that Yahoo hopes will add to its bottom line.

Google CEO Eric Schmidt says that the two search firms are moving ahead with plans to enact the search deal sometime in October.

Schmidt told reporters, "Time is money in our business." Schmidt also said that Google doesn't know the position of regulators eyeing the advertising deal. Because of the lack of knowledge, Schmidt says Google and Yahoo will just continue unabated. CNET News reports that Schmidt and Google still maintain that the deal doesn’t need regulatory approval. However, regulators could raise issues after the deal is done.

CNET News quotes Schmidt saying, "My understanding is that because it's a commercial deal, we have a choice of when we implement it. We voluntarily delayed it so the government could take a look at it. The deal was designed precisely to meet the terms of antitrust laws in the United States, because we knew it would raise these sorts of questions."

Despite Yahoo and Google believing that the deal requires no regulatory approval, many in the advertising industry see it differently. DailyTech reported in September that the Association of National Advertisers sent a letter to the U.S. Department of Justice voicing concerns over the deal between Google and Yahoo. The fear is that placing even more of the advertising market into Google's hands will allow Google to drive up advertising costs.

After the failed negotiations between Microsoft and Yahoo that spanned several months, it's not surprising to find that Microsoft is one of the most outspoken critics of the Google/Yahoo deal. In essence, Yahoo is giving Google exactly what Microsoft wanted -- more spots for advertising dollars and more search traffic.

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By austinag on 9/18/2008 12:53:32 PM , Rating: 2
Without this deal Yahoo had what, maybe 2 - 5 years left?

RE: YaWho?
By Omega215D on 9/18/2008 12:55:48 PM , Rating: 4
They work with Google then when Yahoo! isn't looking OM NOM NOM NOM.

RE: YaWho?
By austinag on 9/18/2008 1:09:22 PM , Rating: 2
Excellent interweb reference!

I call your OM NOM NOM NOM, and raise you one I CAN HAZ YAHOO!

RE: YaWho?
By Motoman on 9/18/2008 2:31:39 PM , Rating: 2

Iz bringed u a bukket, but I kiked it.

RE: YaWho?
By napalmjack on 9/18/2008 3:44:22 PM , Rating: 2
You really shouldn't use racial slurs in here...

Unless your name is Mel Brooks.

RE: YaWho?
By glitchc on 9/18/2008 6:24:25 PM , Rating: 2
Don't you mean Mel Gibson?

RE: YaWho?
By lightfoot on 9/18/2008 6:08:42 PM , Rating: 2
Without this deal Yahoo had what, maybe 2 - 5 years left?

With the deal Yahoo has maybe 6-12 months. It's not good for business when you hand over one of your main sources of income to a "competitor."

Now Yahoo will make less money and Google will make more money with online advertising. How exactly is that good for Yahoo?

RE: YaWho?
By Omega215D on 9/18/2008 8:34:33 PM , Rating: 2
Apparently Yahoo! jump $2 and is now $20 a share (still pitiful from the time it was about $40). Seems like something is up.

How Regulation Works
By lightfoot on 9/18/2008 6:18:11 PM , Rating: 2
Google is right that they don't need permission from regulators. Regulators don't give permission - they use court orders, fines and injunctions to stop the abuses of monopolies. The company is expected not to abuse its dominant market position - you can't ask the regulators permission to abuse it.

Clearly their lawyers think that they are on solid ground - hopefully they are ready to defend that position in court.

"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs
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