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Now that Microsoft's out of picture, Yahoo! rebounds with Google

Yahoo! AdSense
Now that Yahoo! has finally decided things are really over with Microsoft, the company has found room in its heart for a new love: Google. The two companies today announced an advertising partnership that will basically place Google AdSense advertisements alongside Yahoo! search results.

The deal isn't exactly comprehensive. It covers "some of" Yahoo!'s web properties, and the ads will only be displayed in the US and Canada. The agreement is non-exclusive, which means that Yahoo! may display its own ads or ads from other parties as well.

In a press release, Yahoo! says it expects to raise about $800 million in revenue per year from the deal. Google, in return, posted a blog entry saying the deal is "good for users, advertisers, and publishers." The US government isn't quite convinced yet. Back in April, the Justice Department responded to a test run of a Google/Yahoo! partnership with an investigation. And today the chairman of the US Senate Antitrust Subcommittee said the Senate will be closely examining the deal.

Tags: adsense, advertising, google, yahoo