Google to handle Yahoo’s ad business

Yahoo has abandoned four month long talks with Microsoft and created a deal with Google to handle advertising revenue in a bid to boost profits for the struggling company.

The deal comes after Yahoo and Microsoft made an announcement saying their talks had failed to create a merger or partnership, causing Yahoo shares to plunge 13% as some investors push to have the Microsoft deal reopened.

But Google is looking forward to helping the company stay away from Microsoft, with co-founder Sergey Brin saying: “I am happy to be helping them to stay independent.”

Yahoo hopes to utilise Google’s search technology to display advertisements on its site, in an effort it hopes will boost revenue to in excess of $US800 million.

Research firm eMarketer calculates Google holds around 75% of the online search market in the United States, while Yahoo holds around 9%, but still comes in at second place.


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