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April 20, 2008

Yahoo Dances With Google to Make Microsoft Jealous

Last week, it was announced that Yahoo and Google had formed an agreement for Google AdSense ads to run on Yahoo’s US-based search results for a trial period of 2 weeks. Rumors suggested that this was a direct retaliation for Microsoft’s seemingly low bid and veiled “hostile takeover” threat.

Well, the trial has only been running just over a week and according to Marketing Pilgrim, Yahoo and Google are madly in love with the potential of their new relationship. So much so that they’ve stopped the trial earlier than expected. Perhaps they’ve seen enough click-through evidence to prove the whirlwind romance has what it takes to last the distance. Or perhaps Yahoo felt they had made their point to Microsoft.

Has it been enough to make Microsoft so jealous as to increase their offer for Yahoo and knock out their rival in love and ad profits? Time will tell.