Google-Yahoo Deal Struck Down By Department Of Justice

Wired:

The Justice Department said Wednesday that the Google/Yahoo ad search deal would have made the two companies "collaborators rather than competitors" and left little doubt that regulators would have filed suit to prevent the partnership from ever happening.

Google's decision to unilaterally withdraw its proposal "eliminates the competitive concerns identified during our investigation and eliminates the need to file an enforcement action...," the DoJ said in a statement. "The arrangement likely would have denied consumers the benefits of competition --- lower prices, better service and greater innovation," it said.

Google first proposed the deal on June 12 and voluntarily delayed implementation four months to give regulators time to vet it. It repeatedly said it would implement it with or without DoJ pre-approval. Then as its October deadline came and went, Google said it would delay further -- but not indefinitely. This week Google proposed new terms to try to assuage Justice, but apparently that was not enough and it decided to take its ball and go home.

Read the whole story: Wired

Comments

[RationalDubSteppa]

That merger would've been a problem. Yahoo is a victim of it's own lack of imagination, engineering prowess and design acumen. They need to take a long look in the mirror if they are to survive.

[KillTheMessenger]

OK... technically the Yahoo search engine is based on Google's already. And economically there is very little a failing Yahoo could to for a successful Google. If Yahoo goes, most of the add revenue will come to Google anyway. So why even bother?

[Rule Of Law]

If they had both been Wall Street investment banks that donated heavily to Republicans, this merger would have gotten the blessing of everyone from Bush down to Bernanke.

[joebaggadonuts]

YABAFU.

I can't wait until January 20, 2009.

[ibsteve2u]

Yahoogle? lolll...man. Don't get in the trademark business, Wired.

"Yahoogle"...the noise emitted by a walrus when he catches himself in his zipper?