Press release
MOUNTAIN VIEW, Calif. (June 12, 2008) – Google (Nasdaq: GOOG) today announced that
it has reached an agreement that gives Yahoo! the ability to use Google's
search and contextual advertising technology through its AdSense™ for Search
and AdSense for Content advertising programs. Under the agreement, Yahoo! has
the option to display Google ads alongside its own natural search results in
the U.S. and Canada. In addition, Yahoo! can serve contextually targeted ads on
its U.S. and Canadian web properties as well as on its current publisher
partner sites. Yahoo will continue to operate its own search engine, web
properties and advertising services.
In addition, Yahoo! and Google agreed to enable interoperability between their
respective instant messaging services bringing easier and broader communication
to users.
"This commercial agreement provides Yahoo! with the opportunity to deliver
more relevant ads to users and provide advertisers and publishers with better
advertising technology to help them succeed in their own businesses," said
Eric Schmidt, Chairman and CEO of Google. "This agreement will preserve
the competitive and dynamic online advertising space."
As a result of the agreement, Yahoo! will be able to complement its own
advertising program with Google’s advertising technology. As a result,
advertisers will be able to better reach consumers, and Yahoo! and its current
publisher partners can generate more revenue. Yahoo can use Google's
advertising technology on as many or as few of its search results and content
pages as it chooses.
This non-exclusive agreement allows Yahoo! to enter into similar agreements
with other advertising providers. In addition, Yahoo! will maintain
relationships with its own advertising customers and will continue to rely
exclusively on its own advertising program outside of the U.S. and Canada. The
agreement has a term of up to ten years: a 4-year initial term and two 3-year
renewals at Yahoo!’s option. Financial terms between the two companies were not
disclosed.
Although Google and Yahoo are not required to receive regulatory approval of
the arrangement before implementing it, the companies have voluntarily agreed
to delay implementation for up to three and a half months to give the U.S.
Department of Justice time to review the arrangement.