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Yahoo and Google step closer to ad partnership

The landmark trial of Google's AdSense system on Yahoo's website has proved successful, an insider has revealed.

According to an article published yesterday (April 16th) in the Wall Street Journal, "people familiar with the matter" have said that the rival search engines are moving closer to a deal that will see Yahoo outsourcing its search advertising to Google.

The move would allow Yahoo to concentrate on its online brand advertising business.

However, the source added that Google and Yahoo were considering how to avoid antitrust challenges.

Following the search engine's announcement of the AdSense test, Microsoft's general counsel, Brad Smith, expressed concern that "any definitive agreement between Yahoo and Google would consolidate over 90 per cent of the search advertising market in Google's hands".

"This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo. We will assess closely all of our options." ADNFCR-1536-ID-18555955-ADNFCR