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Yahoo! shuns Microsoft and now snuggles up to Google

By Andrew Redfern @ 10th April 2008 12:11 pm

The ongoing Sale/ No Sale of Yahoo! to Microsoft took another step sidewides today when Yahoo produced a press release about how they are “to conduct limited Google AdSense for Search in US”. This major change in direction will no doubt infuriate Microsoft and just maybe force them to play thier hand.

Yahoo! commented “Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, announced today that it will begin a limited test of Google Inc.’s AdSense for Search service, which will deliver relevant Google ads alongside Yahoo!’s own search results.

The test will apply only to traffic from yahoo.com in the U.S. and will not include Yahoo!’s extended network of affiliate or premium publisher partners. The test is expected to last up to two weeks and will be limited to no more than 3% of Yahoo! search queries.

As previously announced, Yahoo!’s board of directors is exploring strategic alternatives to maximize stockholder value, including exploration of potential commercial business arrangements.

The Company noted that the testing does not necessarily mean that Yahoo! will join the AdSense for Search program or that any further commercial relationship with Google will result. The Company further stated that it would not comment on the nature or timing of any potential relationship.”

We dont know what lies ahead for the big three but they are certainly interesting times!

Andy Redfern

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