The Giant Just Got Bigger!

I was stunned when I heard that Yahoo has struck an advertising deal with Google worth an estimated $800 million a year. Of course the real winner in this is Google. Not only to they gain a major publisher they also keep Yahoo out of the hands of Microsoft.

This is a strange move by Yahoo! on the basis of their acquisition of Overture some years back. Yahoo have said that they will mix the ads with both Google & their own Search listings - but surely this conflicts for advertisers?

This deal seems to me like Yahoo are unable to properly monitise their traffic... it produces a clear sign point in only one direction Google to absorb them perhaps?