Yahoo! is currently running a two week trial of Google’s Adsense on 3% of its US search results. The trial is seen as an investigation into the prospects of a long term partnership between the two companies. The core idea, (according to Yahoo!) is to exploring strategic alternatives to maximize stockholder value, but is it really?

Or is this just game playing with Microsoft? Perhaps to boost perceived company value or to allude at the creation of an advertising monopoly with Google. What ever the aim — Microsoft’s General Councel, Brad Smith has responded by posting this comment:

Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.

Interestingly — Microsoft are complaining about the market becoming less competitive. Surely that’s a case of the pot calling the kettle black?

TTFN

This entry was posted on Thursday, April 10th, 2008 at 1:30 pm, contains 202 words, and is filed under Website Revenue Strategies. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed. The views and opinions in this blog post are those of its author.