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Yahoo, Google rethink ad deal
04.11.08
Internet giants Yahoo and Google have scaled back the scope of their search for an advertising deal in a bid to get it past regulators.
Google almost walked away from the deal after it became clear it would not be approved by authorities.
Yahoo founder and chief executive Jerry Yang drew up the revenue-sharing arrangement in June as part of his plan to drive away a $47.5 billion (£28.87 billion) takeover bid from Microsoft.
The two firms have reportedly submitted a reworked proposal to the Department of Justice that shortens their partnership to two years from 10.
Insiders say the revised deal also caps the percentage of search revenue Yahoo can collect from Google at 25%, and lets Google advertisers opt out of being placed on Yahoo.
A Yahoo spokeswoman said the company continues to work with the Justice Department and discussions are ongoing. Google would not comment.
