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Yahoo, Google May Reveal Search-Ad Pact Next Week: Report



By Rafael Diaz
23 May 2008 @ 11:04 pm ET

NEW YORK - Yahoo Inc. and Google Inc. may announce a search-advertising agreement as soon as early next week, according to media reports.

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YHOO 14.99 -0.42
GOOG 408.49 -10.5
MSFT 23.37 -0.67

The Wall Street Journal said the companies have been in talks to have Google use its technology to place ads beside Yahoo search results, citing a source familiar with the matter.

Several analysts have estimated that a deal with Google could boost Yahoo's cash flow by as much as $1 billion a year.

Yahoo recently rejected a takeover bid by software giant Microsoft Corp., which is trying to boost its Internet advertising business and increasing competition against Google.

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