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Google breaks Yahoo’s heart

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Google breaks Yahoo’s heart

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The drama has come to an end. Like any good soapie, the Google/Yahoo partnership has endured lust, accusations, hardship and strained friendliness, but it has now come to its conclusion – Google has broken up with Yahoo.

The search engine leviathan has terminated its proposed deal to sell ads on Yahoo’s search listings.

The deal that had been estimated to boost Yahoo’s revenue by up to US$800m was struck in July, was foiled by an US Justice Department anti-trust investigation.

A Yahoo spokesman says that it “continues to believe” in the benefits of the agreement and “is disappointed that Google has elected to withdraw from the agreement rather than defend it” during the Justice Department’s probe.

Google notified Yahoo of its refusal to move forward with the deal after the Justice Department said it would seek to block it, despite Yahoo’s proposed revisions to the plan and promises to take it out to a nice restaurant.

Yahoo struck the Google deal during a rocky period in its existence – its future prospects have dwindled following its rejection of Microsoft‘s takeover advances earlier this year (Microsoft was too overbearing and they had nothing in common).

But Yahoo indicates that the ending of the deal did not significantly impair its prospects and that it can move on after its heartbreak.

“While the implementation of the services agreement with Google would have enabled Yahoo to accelerate its investments in its top business priorities through an infusion of additional operating cash flow, this deal was incremental to Yahoo’s product roadmap and does not change Yahoo’s commitment to innovation and growth in search.”

It is unknown, however, whether Google broke up with Yahoo in person or via a text message.

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