Yahoo and Google, the world's two leading search engines, have announced a two-week experiment during which they will share their advertising space.
During this pilot experience, Google will be able to include ads alongside 3% of search results on the Yahoo website. In addition, both parties have reported that they could forge other alliances.
According to analysts, this move has been designed to thwart attempts by Microsoft, which has offered $ 44.6 billion for the purchase of Yahoo, or to obtain a higher offer.
According to the New York Times, Microsoft and News Corp are also studying the possibility of making a joint bid for Yahoo, in order to combine three of the most visited Web sites in the world: MySpace, Yahoo and MSN.com.
At the same time, according to the Wall Street Journal, Yahoo has turned to Time Warner's AOL to stay away from Microsoft. The deal would involve Time Warner's cash investment for 20% of the merged company, which Yahoo could use to recover shares.
Microsoft, for its part, has criticized the Yahoo and Google advertising agreement, noting that any long-term agreement would not serve the interests of consumers.
“Any definitive agreement between Yahoo and Google would consolidate 90% of the search advertising market in Google's hands. This would make the market much less competitive, "said Brad Smith, Microsoft General Counsel.
Yahoo, by contrast, noted that this test does not necessarily imply "any future business relationship with Google."
Investors have reacted positively to the announcement and Yahoo shares have seen their value increase by 7%.
Source: BBC Business