Report Predicts Yahoo Google May Drop Search Deal

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Report Predicts Yahoo Google May Drop Search Deal
By Reuters
2008-11-03

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Having failed so far to reach an agreement with the DOJ on implementing their search advertising partnership, Google and Yahoo could announce next week a decision to walk away from their search deal, the Wall Street Journal is reporting.

SAN FRANCISCO (Reuters) - Google Inc. and Yahoo Inc. could announce a decision to walk away from their search deal by the middle of next week, The Wall Street Journal reported on Thursday, citing people familiar with the matter.

The two Internet companies have so far failed to reach an agreement with the U.S. Department of Justice on implementing their search advertising partnership.

Earlier this month, the companies said they had decided to delay implementing the controversial deal, struck in June, due to ongoing discussions with regulators.

The deal, which allows Google to sell advertising for some of Yahoo's online advertising space, has drawn fierce criticism from advertisers, who fear higher prices.

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