Yahoo, Google Rejigger Ad Partnership to Stick to Rules

Deal scaled back in effort to appease anti-trust regulators
By Rob Quinn,  Newser Staff
Posted Nov 4, 2008 2:12 AM CST
Regulators have been seeking to block the Yahoo-Google deal, claiming it will give the firms an unfair advantage over rivals.   (AP Photo/Marcio Jose Sanchez)
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(Newser) – Yahoo and Google have scaled back their ad partnership in a bid to satisfy regulators concerned that the deal will run afoul of anti-monopoly rules, insiders tell the Wall Street Journal. The new deal caps the amount of revenue Yahoo can earn from the deal at 25%, and slashes the length of the agreement from ten years to two years.

It's not clear whether the revisions submitted to the Department of Justice will be enough to appease regulators, who have been building a case to block the deal. Yahoo, recently hit by a wave of executive departures, is believed to be willing to accept major limits to the deal to ensure its survival.