The expected Yahoo-Google Advertsing Deal finally signed

Yahoo was giving the signals of hiring Google services to sail its boat through the tough and cut-throat competitive internet advertising business.As recently Google snatched the much desvering lead in terms of visitors and all from Yahoo and Failure of Microsoft-Yahoo talks, so something was seriously required to keep Yahoo living as an internet giant.

Today ,Google has announced an agreement that lets Yahoo use its AdSense for Search and AdSense for Content advertising programmes.

The news follows Microsoft's statement that it would be open to an alternative transaction to acquire Yahoo, and Yahoo's curt dismissal of any such deal.

Under the agreement with Google, Yahoo has the option to display Google ads alongside its own search results in the US and Canada.

In addition, Yahoo can serve contextually targeted ads on its US and Canadian web properties as well as on its current publisher partner sites.

The deal will not prevent Yahoo from continuing to operate its own search engine, web properties and advertising services.

In a further sign of rapprochement, Yahoo and Google agreed to enable interoperability between their respective instant messaging services to bring easier and broader communication to users.

Eric Schmidt, chairman and chief executive at Google, claimed that the deal is not anti-competitive.

"This agreement will preserve the competitive and dynamic online advertising space," he said.

It will surely be interesting to see what step Microsoft will take now ....hmmm....very interesting!!