Yahoo has signed a non-exclusive deal to include Google advertising on selected search terms. This means that Yahoo search advertising will now be a mix of ads served by its own Panama system, Google’s AdSense for Search, and potentially other third-parties. Yahoo believes that the move can bring in up to $800 million in additional revenue per year in the long-run; $250-450 million in the first twelve months after implementing Google ads.
While the deal announcement has created a modest uptick in Yahoo shares late this afternoon, it’s a far cry from the $31/share that could’ve been had if the company had simply said “Yes” to Microsoft just four short months ago. Adding insult to injury, the following statement from Sue Decker:
“This agreement provides a source of funds to both deliver financial value to stockholders from search monetization and to invest in our broader strategy to transform display advertising and advance our starting point objectives with users.”