US: Google and Yahoo team up

After months of stagnant negotiation with Microsoft, Yahoo has taken its business elsewhere, agreeing yesterday to a deal with search-engine king Google. The move puts to an end, for now, a hectic four months for Yahoo (the deal still needs to be reviewed by antitrust regulators).

The agreement stipulates that Google provide ads next to Yahoo's search results and on some of its websites. For both companies the deal should prove to be beneficial, solidifying Google's command of the search advertising market, and easing Yahoo's strained finances.

The agreement also has implications for a newspaper industry still figuring out how to coexist with Google News, the search engine's news aggregator. Newspapers claim that Google News lifts their content, steering readers away from the papers' websites. Just last month, a Belgium copyright group for newspapers sued Google over the search engine's "content theft."

Click here for more information on the Google-Yahoo deal.

Source: New York Times