Google and Yahoo sign AdWords Deal

[abbottsys]

Google will run AdWords ads on Yahoo.
Seems like we've been expecting this deal forever, but it's finally done.
http://www.reuters.com/article/rbssT...AS819820080612

[jimbeetle]

I'm not a big PPC user, but very curious as to what you power folks' strategies are going to be when this goes live in about three and a half months or so.

It's apparently going to work similar to the recent test. Yahoo will cherry pick those two or three percent of (?higher paying?) terms in which it predicts that AdWords will be more likely to produce more revenue.

So, assuming that many of these competitive terms are what you currently run to cover your bases on Y!, what do you think you'll have to do to get the same coverage once the deal kicks in? Do you expect more guidance from G and Y?

[cryptblade]

It's done but still subject to review. Apparently already outcries from several forces. Democrats are already birddogging this for anti-trust. Google and Yahoo will hopefully make nice with them since they appear to be taking over DC in the fall...

This is pretty interesting to follow though...

I get the since that there are no corporations working but individuals with autonomous power at corporations. I mean, Icahn leading a revolt... Yang seemingly bumbling around... Balmer maybe to prideful and walking away from the deal... and Google like a distant puppetmaster - more psychological than real puppetmaster... pretty interesting to see....

[abbottsys]

Difficult to say for sure how this will impact Yahoo advertisers, but I gotta believe Yahoo will go for a clever two prong benefit...

1) Get a revenue boost by picking the highest paying AdWords ads

2) The impact of adding the above to the Yahoo auction will tend to drive up bids for *all* Yahoo advertisers, thus providing Yahoo with a second revenue boost

As regards pitching this for DOJ approval.. they will probably use the arguament that this is not a corporate takeover, thus not covered by anti-trust, it is just the open market in operation. Open bidding, come one come all

[cryptblade]

Guess it remains to be seen how this goes. YHOO could be a buying opportunity if DOJ approves and no one else can contest this "marriage" of sorts.

I mean, YHOO down big yesterday (13% I think) and today down 4-5% trading at $22 a share. YHOO shareholders not happy with the news so far.

But, it is reported that Yahoo's trial in April proved to be more profitable than Yahoo's own system. How much more profitable is the key. If significantly more profitable with less overhead, this could help Yahoo cut cost and increase revenue - making shareholders more happy.

Still - too early to tell yet. Apparently still no word from Icahn. Maybe he's steaming over this whole thang?

[michelle car]

If you don't already participate in conquesting (buying your competitors terms) you may want to start doing so, because your competitors may have a double edge over bidding on your terms now - in both Google and Yahoo.

At least, this is exactly what happened during the 3 week test back in April.

[cryptblade]

The latest news is that the Google-Yahoo deal has provisions that if Yahoo is acquired and/or the current board is replaced, Google can walk away from the deal.

That means if Icahn replaces the board, Google walks away leaving Icahn with nothing - since the deal with Microsoft is pretty much completely dead. A 3rd attempt at trying to reach a deal will make Yahoo seem desperate - and definitely not warrant $34 a share.

I wonder if there's a part of Yahoo and Yang thinking - "checkmate" to Icahn?