The Microsoft/Yahoo takeover saga took new turns this week, as Yahoo announced an advertising deal with Google, while Microsoft was reported to be considering a joint bid for Yahoo with News Corp.
For a period of two weeks, US Yahoo users may see Google adverts delivered alongside Yahoo’s own search results, as Yahoo will be testing Google’s AdSense for Search service. The test will be limited to no more than 3 per cent of Yahoo search queries.
The move comes as Yahoo’s board of directors look at ways to maximise stockholder value, following Microsoft’s threat to take its purchase offer directly to stakeholders if a merger agreement is not reached soon.
Meanwhile, Microsoft was reported to be in talks with News Corp about a joint bid to acquire Yahoo, but there are also reports that Yahoo is forming a deal with Time Warner to merge with its AOL unit.
