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Google’s Traditional Marriage With Yahoo Dissolves. It’s Not Your Fault, Kids

The Way We WereIt seems the two titans of search that got together earlier in the year, Google and Yahoo, have ended their whirlwind romance and have agreed to go their own separate ways. Google was always the stronger of the two, better known and more popular, but Yahoo brought a certain Je ne sais quoi to the relationship that people liked. It was good while it lasted. Try not to get all weepy, kids. And don’t forget: it’s not your fault.

From the official Google blog:

Ending our agreement with Yahoo!11/05/2008 07:00:00 AMIn June we announced an advertising agreement with Yahoo! that gave Yahoo! the option of using Google to provide ads on its websites (and its publisher partners’ sites) in the U.S. and Canada. At the same time, both companies agreed to delay implementation of the agreement to give regulators the chance to review it. While this wasn’t legally necessary, we thought it was the right thing to do because Google and Yahoo! have been successful in online advertising and we realized that any cooperation between us would attract attention.We feel that the agreement would have been good for publishers, advertisers, and users — as well, of course, for Yahoo! and Google. Why? Because it would have allowed Yahoo! (and its existing publisher partners) to show more relevant ads for queries that currently generate few or no advertisements. Better ads are more useful for users, more efficient for advertisers, and more valuable for publishers.However, after four months of review, including discussions of various possible changes to the agreement, it’s clear that government regulators and some advertisers continue to have concerns about the agreement. Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners. That wouldn’t have been in the long-term interests of Google or our users, so we have decided to end the agreement.We’re of course disappointed that this deal won’t be moving ahead. But we’re not going to let the prospect of a lengthy legal battle distract us from our core mission. That would be like trying to drive down the road of innovation with the parking brake on. Google’s continued success depends on staying focused on what we do best: creating useful products for our users and partners.

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