Fearing a protracted legal battle, damage to its reputation/brand and perhaps even to its stock price, Google abruptly pulled out of the proposed Yahoo paid search deal. It was revealed at the time that the US Justice Department was planning to file an action against the deal. Now in an interview in AmLaw Daily, the attorney spearheading the potential case against Google, Sanford Litvack discusses what happened. Here are some excerpts from the article/interview: “We were going to file the complaint at a certain time during the day,” says Litvack, who rejoins Hogan & Hartson today. “We told them we were going to file the complaint at that time of day. Three hours before, they told us they were abandoning the agreement.” The never-filed government complaint would have charged that the agreement violated Sections 1 and 2 of the Sherman Act, Litvack tells the Am Law Daily in one of his first interviews since the companies canned the venture. Section 1 bans … [Read more...] about Google Cancelled Yahoo Search Deal To Avoid “Monopoly” Designation
Search deal
Yahoo, Microsoft Close Search Deal
It’s somewhat ceremonial, but also an important milestone: Yahoo and Microsoft have announced the finalization and execution of the search deal that was first announced in late July. The companies issued this statement: “Microsoft and Yahoo! believe that this deal will create a sustainable and more compelling alternative in search that can provide consumers, advertisers and publishers real choice, better value, and more innovation. “Yahoo! and Microsoft welcome the broad support the deal has received from key players in the advertising industry and remain hopeful that the closing of the transaction can occur in early 2010.” While the deal still faces regulatory approval, today’s announcement means Microsoft and Yahoo can now move forward with their integration plans. Officials in Canada and Australia have already signed off on the agreement. There’s more discussion on Techmeme. About The Author Matt McGee is the Editor-In-Chief of Search … [Read more...] about Yahoo, Microsoft Close Search Deal
Google Executives Defend Potential Yahoo Search Deal, Microsoft Releases “Proxy Directors” And Looks Beyond Search And “The Last Click”
Yesterday before Google’s annual meeting of shareholders, Google CEO Eric Schmidt and co-founders Sergey Brin and Larry Page fielded questions from reporters on a range of subjects, including a potential paid search deal with Yahoo and its anti-trust implications. Their argument was that a future paid search deal could be set up in a way to allay such concerns, currently being explored by the US Justice Department. And because of the auction structure of the model, there are no price-fixing implications, Brin said. Schmidt simultaneously reiterated his desire that Google and Yahoo work together but said there was no deal to announce at the moment. The Google-Yahoo paid search test and potential deal was cited in Microsoft CEO Steve Ballmer’s letter withdrawing the bid for Yahoo as one of the reasons. Google said at the meeting yesterday that the company reached out to help give Yahoo “choices.” “They were under hostile attack and we want to make sure they … [Read more...] about Google Executives Defend Potential Yahoo Search Deal, Microsoft Releases “Proxy Directors” And Looks Beyond Search And “The Last Click”
As Expected, Yahoo Announces “10 Year” Google Paid Search Deal
This afternoon Yahoo confirmed that it had entered into a paid search deal with Google. That deal is described by Yahoo in its press release and by Google in a related blog post. Google takes pains in the post to insulate the deal against anti-trust claims. The renewable 10-year deal goes beyond paid search results on Yahoo and includes contextual advertising on the Yahoo network and, potentially, on Yahoo partner sites. In a little bit of a surprise, the two companies have thrown in IM interoperability for good measure. Here are the main points as made on the conference call that just happened: Yahoo sees an $800 million annual revenue opportunity, based on search queries where it’s not currently monetizing them well or efficiently. Yahoo retains control over when it shows Google ads and when it doesn’t. Yahoo president Sue Decker emphasized that this was largely about “the tail” – showing ads where Yahoo doesn’t have inventory. It basically makes … [Read more...] about As Expected, Yahoo Announces “10 Year” Google Paid Search Deal
Google And The “M-Word,” GooHoo Paid Search Deal Confronts Anti-Trust Scrutiny, Viacom Wants YouTube Employee Records, & Digg Wants To Sell Itself
Rob Norman is CEO of Group M Interaction Worldwide. Perhaps then it’s appropriate that he uses the “M-word” — monopoly — in an AdAge piece about Google. Norman has been a critic of the Google-Yahoo paid search deal and has said several times that he thinks it will result in higher keyword prices. In terms of the anti-trust implications of the Google-Yahoo deal, hearings will begin tomorrow in the US Senate subcommittee on antitrust, lead by Senator Herb Kohl. Simultaneously, numerous US states’ attorney generals are launching their own versions of that anti-trust inquiry at a more local level. Notwithstanding these investigations, states generally don’t have jurisdiction over anti-trust issues. On another legal front, Viacom is now fighting with Google over YouTube employee viewing habits. The idea here is that if YouTube employees and management were uploading and/or viewing copyrighted material illegally on the site, that would go to their … [Read more...] about Google And The “M-Word,” GooHoo Paid Search Deal Confronts Anti-Trust Scrutiny, Viacom Wants YouTube Employee Records, & Digg Wants To Sell Itself
Google, Yahoo Prepare To Abandon Paid Search Deal?
Despite public pronouncements of confidence by Google and Yahoo about the future of their paid search deal, which was partly set up to fend off Microsoft and hostile Yahoo shareholders who wanted a Microsoft takeover, the emerging consensus is that it’s not going to happen. The Wall Street Journal this morning reports that the parties are not coming to terms and the US Justice Department wants concessions that the search engines don’t like. According to the WSJ: The two companies met Thursday with the Justice Department, part of a series of meetings to address the concerns of regulators. While the parties may agree to continue the talks — or they could reach a resolution — there are signs they are unwilling to make compromises to address the Justice Department’s objections . . . The option to scrap the deal has been on the table before, but Google in particular has begun considering it more seriously as Justice Department talks haven’t progressed. … [Read more...] about Google, Yahoo Prepare To Abandon Paid Search Deal?
Bing Users Click More, Search Deal With Yahoo Coming This Week
A report analyzing traffic and click-through rates from ad network Chikita finds that “Bing users are over 50% more likely to click an ad on your site than Google users.” What this means, according to the post, is those who arrive at third party sites via Bing click more frequently on ads on those sites than those coming through Google. TechCrunch offers a bit more detail and speculation about why this might be (i.e., “the law of large numbers”). According to Chikita, the respective click rates are: Google: .97 percent Yahoo: 1.24 percent Bing: 1.5 percent Bing appears has made some incremental gains in search market share since its launch at the end of May. The two most recent roundups of the numbers are here and here. Even though Bing has been well received and has some momentum it doesn’t appear that will quickly translate into significant market share advances. For that reason Microsoft still needs Yahoo’s reach. Turning to the seemingly … [Read more...] about Bing Users Click More, Search Deal With Yahoo Coming This Week
The Microsoft-Yahoo Search Deal, In Simple Terms
What a day! Still trying to digest all the news about the Yahoo Microsoft search deal? So are we. While answers are still coming in, here’s what we know so far. NOTE: The deal has now been approved. See Yahoo & Microsoft Receive Go Ahead To Implement Search Deal. In a nutshell, what just happened? Yahoo and Microsoft both have behind-the-scenes technology used to generate those listings you get when you perform a search. Yahoo’s going to give up their technology and use Microsoft’s. Why’s Yahoo giving up that technology! Running that technology is costly. Rather than own the technology, Yahoo feels its more economical to lease it from Microsoft. Doesn’t it also cost Microsoft a lot of money to run the technology? Yes, it does. But Microsoft has no choice but to run it. It wants to compete with Google. To do so, Microsoft built its search technology several years ago. It’s already doing the work, so leasing its results to Yahoo is sort of like … [Read more...] about The Microsoft-Yahoo Search Deal, In Simple Terms
Yahoo & Microsoft Receive Go Ahead To Implement Search Deal
Yahoo and Microsoft announced they have clearance to implement their proposed search deal where Microsoft will power Yahoo Search and search ads. Today they received “unrestricted” clearance from both the U.S. Department of Justice (see here) and the European Commission to proceed. And proceed they will. Yahoo said the implementation will begin in the next “days.” Here is the announcement: We will have more on this later, but see our archives for more details. SUNNYVALE, Calif. & REDMOND, Wash.–(BUSINESS WIRE)–Microsoft (Nasdaq:MSFT – News) and Yahoo! (Nasdaq:YHOO – News) announced today that they have received clearance for their search agreement, without restrictions, from both the U.S. Department of Justice and the European Commission, and will now turn their attention to beginning the process of implementing the deal. Implementation of the deal is expected to begin in the coming days and will involve transitioning Yahoo!’s … [Read more...] about Yahoo & Microsoft Receive Go Ahead To Implement Search Deal
Jobs Bio Reveals Intense Anger At Google, But Didn’t Block Search Deals
We already knew that Steve Jobs felt betrayed by Google’s launch of Android but wow, was he really mad. But oddly, despite vowing nuclear war against Google, as his forthcoming bio reveals, he kept Google as the search default in Apple products. The AP obtained a copy of the authorized Jobs bio that comes out next week. In its story, the AP details tidbits of Jobs being so angered by Android: Jobs was livid in January 2010 when HTC introduced an Android phone that boasted many of the popular features of the iPhone. Apple sued, and Jobs told Isaacson [his biographer] in an expletive-laced rant that Google’s actions amounted to “grand theft.” “I will spend my last dying breath if I need to, and I will spend every penny of Apple’s $40 billion in the bank, to right this wrong,” Jobs said. “I’m going to destroy Android, because it’s a stolen product. I’m willing to go thermonuclear war on this.” Jobs wasn’t … [Read more...] about Jobs Bio Reveals Intense Anger At Google, But Didn’t Block Search Deals