Wednesday, November 5, 2008

"Google and Yahoo say deal would have survived a suit" - NY Times

In a bid to remain independant Yahoo the number 2 search engine in the world (second to Google) had tried to seal and advertising deal with Google in which they would offer advertising for Yahoo. this deal was met with apprehension from the justice department who threatened an antitrust suit against the advertising venture.

Just before the deal was to close Google pulled out, believing that this was in the best interest for the company not to expose itself to a lengthy and costly court proceeding even though they fundamentally believed that if the two companys had gone to court they would have won Mr Schmidt cheif executive of Google was quoted saying

"We cancelled the deal with about one hour to go before a lawsuit was going to be filed against our deal. We concluded after a lot of soul-searching that it was not in our best interest to go through a lengthy and costly trial which we believe we ultimately would have won.”

The deal was to be of great financial benefit to Yahoo generating anywhere from $250 to $450 million in extra revenue in the first year.


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