SAN FRANCISCO - In an effort to salvage their online search deal, Yahoo! (YHOO) and Google (GOOG) have reportedly agreed to revise the terms in the hopes of bypassing any challenges from the U.S. Justice Department.
According to a report in the Wall Street Journal, the two companies submitted a new plan to the Justice Department over the weekend, in which they reduced the number of years they would engage in the search deal to two from 10.
They also agreed to limit the revenue Yahoo! can generate from the deal to 25% of its total search revenue. At the same time, Google advertisers will get to decide whether or not they want their ads to appear on Yahoo! sites.
A Google spokesman would not confirm the Journal's report, and instead reiterated the company's previous statement on the issue."We are continuing to have cooperative discussions with the Department of Justice about this arrangement and agreed to a brief delay in implementing the agreement while those discussions continue," the spokesman said. "We are confident that the arrangement is beneficial to competition, but we are not going to discuss the details of the process." A Yahoo! spokeswoman offered a similar response: "As we have said, we believe strongly that this agreement will strengthen Yahoo!'s competitive position in online advertising and will help to drive a more robust, higher quality Yahoo! marketplace for our advertisers, publishers and users." On Friday, the Journal reported that both Yahoo! and Google were considering scrapping the deal altogether, but now it seems the two sides are willing to take whatever steps necessary to ensure the agreement goes through.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV