Google Cools On Yahoo Ad Pact: Report

So much for that idea: WSJ is reporting that Google (NSDQ: GOOG) is losing interest in an ad-pact with Yahoo (NSDQ: YHOO). The idea of outsourcing search ads to Google had been floated as a possible alternative for Yahoo to doing a deal with Microsoft (NSDQ: MSFT), since it might give the company a quick revenue jolt. But Google, having more fully studied the regulatory implications, has pulled back. Apparently, the company is wary about adding to its dominance of the online ad space in this manner. That’s understandable given the scrutiny the company is already under. And it was never clear how this was a real option for Yahoo. Perhaps if such a move had been done earlier, as some were calling for last year, then it might have made a difference. But the consensus that’s emerged is that the Yahoo board now has a rather narrow set of options.

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