Online ad deal between Google and Yahoo

Google and Yahoo have forged a new agreement, reportedly worth between $250 and $450 million in extra operating cash flow per year for Yahoo. Later this year in the US and Canada, Google ads will appear alongside some Yahoo search results. According the Google, this agreement will allow Yahoo to provide more relevant ads to users and also provide advertisers and publishers with better access to advertising technology. For Google, the agreement serves to reinforce its dominance in the search advertising market. The initial deal will last three years with the possibility of extending to ten. Yahoo sees this as a step forward towards the convergence of search and display in online advertising. However not everyone views this as a positive development with speculation that the deal will draw the attention of antitrust regulators.

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