Google kills Yahoo! ad deal

Remember how Yahoo! and Google announced this summer that they would be partnering to place Google AdSense ads next to Yahoo! search results? Yeah, that's not going to happen.

Basically, Google says it's pulling out of the deal because government regulators and "some advertisers" are uncomfortable with the idea. The New York Times puts things a bit more strongly, mentioning that regulators planned to file a lawsuit to block the patnership between two of the largest web search portals.

The deal was first announced back in June, shortly after Microsoft walked away from negotiations to purchase the company. At this point, it's not clear what the future holds for Yahoo!, a company that's clearly looking for ways to revitalize its brand.

Tags: advertising, anti-trust, google, yahoo