Microsoft-Yahoo might be done, but Google-Yahoo has just begun.
As expected, Google formally announced an advertising partnership with Yahoo Thursday night. The "non-exclusive" agreement with allow Yahoo access to Google's AdSense for search and content advertising programs in the U.S. and Canada.
The 10-year deal kicks off with an initial four-year term, followed by two optional three-year renewal periods, Yahoo CEO Jerry Yang said during a Thursday conference call.
Yang expects that deal to generate between $250 million and $400 million in incremental operating cash flow in the first 12 months, with the opportunity to earn $800 million in annual operating revenue in the U.S. and Canada.
"The online advertising industry is incredibly dynamic," Yang said.
Yang brushed off suggestions that a Yahoo-Google would run amok of antitrust regulations, but said that Google and Yahoo would delay implementation of the program for 3.5 months until the Department of Justice has an opportunity to review the deal.
Sen. Herb Kohl chairman of the Senate Antitrust Subcommittee, vowed Thursday to closely examine the deal.
"This collaboration between two technology giants and direct competitors for Internet advertising and search services raises important competition concerns," Kohl said in a statement. "The consequences for advertisers and consumers could be far-reaching and warrant careful review, and we plan to investigate the competitive and privacy implications of this deal further in the Antitrust Subcommittee."
Google denied that the deal was an acquisition. "This is not a merger," Omid Kordestani, senior vice president of global sales and business development wrote in a Thursday blog post. "Rather, we are merely providing access to our advertising technology to Yahoo ...
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