Google Confirms Yahoo-Google Deal on Friday the 13th

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Google's official spin on the Yahoo-Google search deal portrays the pact as a technology play. Yahoo will have access to Google ad technology under the terms of the agreement.

Yahoo stated to Microsoft yesterday that an independent search business is critical to its future. We're puzzled how a partial outsourcing of search ads to Google would somehow ensure its independence.

If anything, the Google deal will weaken Yahoo's position in the search marketplace and likely lead to a defection among software engineers.

Our agreement to provide ad technology to Yahoo! 6/12/2008 03:28:00 PM Posted by Omid Kordestani, Senior VP, Global Sales and Business Development

Today, we announced a non-exclusive advertising agreement that will provide Yahoo! with access to our AdSense for search and AdSense for content advertising programs on their U.S. and Canadian web properties. In addition, we will work to enable interoperability between our respective instant messaging services allowing users better, broader communication online.

We are proud of the advertising technologies we have built, which show users a relevant ad whether they are searching for a specific item or browsing the internet. This arrangement extends those benefits to Yahoo! and its many users, advertisers and publisher partners. We currently provide similar services to sites like AOL and Ask.com as well as many other partners, and we work closely with all of our partners to ensure that our partnership drives their long term success.

Why did we make this agreement? Quite simply, we think it is good for users, advertisers and publishers. By offering Google's industry-leading technology to Yahoo!, the whole system becomes more efficient, and everyone benefits:

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