Google Pulls out of Deal to Escape Lawsuit

Search engine giant, Google has pulled out of the deal with fellow search engine company Yahoo. Should it have gone through, the world would have been able to see the two companies working together in the domain of paid search advertising, but that doesn’t seem to be happening.

Google initiated, what Yahoo has described a disappointing move, to pull out of the deal that the two companies were about to sign in order to escape a lawsuit that would have been filed against them by the US Justice Department. This happened despite the fact that Yahoo had offered to change its own terms to keep the watchdog at peace.

The official Google blog was updated by the Chief Legal Counsel, David Drummond and he said that pressing ahead not only meant a prolonged legal battle but also the possibility of relations being damaged with valuable partners. He described this possibility as not being a part of the company’s or its users’ long term interests and therefore terminated the deal.

Had the deal gone through the two giants would have monopolised display and paid search advertising. This also would have been possible had Yahoo got the opportunity to rearrange its terms. This could easily become an opportune moment for Microsoft to enter the scene.

In fact, from this whole affair Google has come out intact. It is perhaps this fact that would make Yahoo give a chance to Microsoft. Should it work, the former will once again become a formidable opponent to Google.

No Comments

No comments yet.

RSS feed for comments on this post
TrackBack URI

Leave a comment