Music swells as Yahoo dances with Google


Search media buyers are wary of Yahoo's newly announced partnership with Google. Many are wondering if the deal threatens future competition in the space and whether it spells the beginning of the end of Panama, Yahoo's proprietary search platform.

Last week, Yahoo officially turned its back on Microsoft and announced a complex partnership with Google that has Yahoo running ads delivered by Google in conjunction with select search queries on pages of its choosing alongside its own search ads.

Yahoo said it initially will use Google ads only to better monetize less common, "long tail" search terms and that the deal allows it to maintain the ability to package both search and display ads.

But many observers saw the company simply performing a delicate dance for regulators who likely would be suspicious of a deeper partnership. The deal already is being delayed to allow the Department of Justice to conduct a review, the fear being that opening the door to Google might lead it to take over Yahoo's search business and erode competition.

That could lead to a "downward spiral for Panama," 360i CEO Bryan Wiener said, as "the rest of Yahoo's searches will become less valuable. (partialdiff)