Yahoo to Pay $250 Million to Google For Break Up 
Saturday, June 14, 2008
Yahoo has agreed to pay Google a break up fee of $250 million if the partnership falls apart within the first two years.
"If the Services Agreement is terminated by either party within 24 months ... Yahoo! is required to pay to Google the sum of $250,000,000..."
It is indeed a matter of speculation why Yahoo could not negotiate a better deal. Yahoo anticipates a revenue of $250-$450 million in operating cash flow in the first 12 months following implementation. In terms of profit this deal can actually lead to a loss for Yahoo.
This deal would also be a big step for Google in obtaining virtual monopoly in the search advertising market and Yahoo would become completely dependent on Google for search advertising revenue.
"If the Services Agreement is terminated by either party within 24 months ... Yahoo! is required to pay to Google the sum of $250,000,000..."
It is indeed a matter of speculation why Yahoo could not negotiate a better deal. Yahoo anticipates a revenue of $250-$450 million in operating cash flow in the first 12 months following implementation. In terms of profit this deal can actually lead to a loss for Yahoo.
This deal would also be a big step for Google in obtaining virtual monopoly in the search advertising market and Yahoo would become completely dependent on Google for search advertising revenue.
Labels: Google, search advertising, Yahoo
Share It :
Digg |
Sphinn |
Netscape |
Google |
reddit |
del.icio.us |
Squidoo |
StumbleUpon |
Yahoo MyWeb
posted by seo-kolkata at 10:18 PM, | 
0 Comments:
« back home
Post a Comment