Yahoo makes ultimate concession, tests google ads

If Yahoo's movements in recent weeks have been a series of chess moves in its slow-moving stand-off with Microsoft, this one may be the equivalent of promoting a pawn to queen. It's also a very tough pill to sup.

Yahoo has agreed to behavior a limited test of Google's search ads on its own consequence pages. The difficult decision comes more than a year after Yahoo released its Republic of Panama platform for hunt ads monetisation, which itself was the merchandise of many calendar month of intensifier development.

The two-week experiment applies only to Yahoo hunt results in the U.S., and will be capped at 3 percentage of Yahoo's total hunt queries. In a brief statement today, Yahoo insisted the trial does not "needfully" mean the company will join Google's AdSense for hunt network.

In resistance, Microsoft full general Counsel Brad Smith issued a statement this afternoon saying any formal agreement betwixt Google and Yahoo would amount to a virtual monopoly on hunt ads.

"This would make the marketplace far less competitive, in sharp direct contrast to our own proposal to acquire Yahoo," he said. "Our proposal remains the only option put forwards that offering Yahoo shareholders full and fair value for their shares, gives every stockholder a vote on the hereafter of the company, and enhances choice for content creators, advertisers, and consumers."

Last weekend Microsoft issued an ultimatum to Yahoo's board, gift it three weeks to approve his company's $44.6 billion acquisition bid.

Yahoo rapidly responded, reiterating its place that Microsoft's bid undervalues the company. A populace letter from CEO Jerry Yang and president Roy Bostock was remarkably personal in tone. "Steve, you personally attended two of these meetings and could have advanced discussions in any way you saw fit," it said, referring to Microsoft CEO Steve Ballmer.

Then on mon, Yahoo offered new details on its upcoming ad network platform, a release that seemed timed in response to Microsoft's warning.

Investors and search analysts have urged Yahoo to consider outsourcing its search ads to Google going back about a year. Yahoo reportedly entertained the option most recently during talks with Google in February.