Google Announces Non-Exclusive Advertising Services Agreement with Yahoo! in U.S. and Canada
Companies will also Enable Interoperability Between Their Instant Messaging Services
MOUNTAIN VIEW, Calif. (June 12, 2008) – Google (Nasdaq: GOOG) today announced that it has reached an agreement that gives Yahoo! the ability to use Google’s search and contextual advertising technology through its AdSense™ for Search and AdSense for Content advertising programs. Under the agreement, Yahoo! has the option to display Google ads alongside its own natural search results in the U.S. and Canada. In addition, Yahoo! can serve contextually targeted ads on its U.S. and Canadian web properties as well as on its current publisher partner sites. Yahoo will continue to operate its own search engine, web properties and advertising services.
In addition, Yahoo! and Google agreed to enable interoperability between their respective instant messaging services bringing easier and broader communication to users.
"This commercial agreement provides Yahoo! with the opportunity to deliver more relevant ads to users and provide advertisers and publishers with better advertising technology to help them succeed in their own businesses," said Eric Schmidt, Chairman and CEO of Google. "This agreement will preserve the competitive and dynamic online advertising space."
As a result of the agreement, Yahoo! will be able to complement its own advertising program with Google’s advertising technology. As a result, advertisers will be able to better reach consumers, and Yahoo! and its current publisher partners can generate more revenue. Yahoo can use Google’s advertising technology on as many or as few of its search results and content pages as it chooses.
This non-exclusive agreement allows Yahoo! to enter into similar agreements with other advertising providers. In addition, Yahoo! will maintain relationships with its own advertising customers and will continue to rely exclusively on its own advertising program outside of the U.S. and Canada. The agreement has a term of up to ten years: a 4-year initial term and two 3-year renewals at Yahoo!’s option. Financial terms between the two companies were not disclosed.
Although Google and Yahoo are not required to receive regulatory approval of the arrangement before implementing it, the companies have voluntarily agreed to delay implementation for up to three and a half months to give the U.S. Department of Justice time to review the arrangement.
About Google Inc.
Google’s innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google’s targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. For more information, visit www.google.com.
Webcast and Conference Call Information
The company will host a conference call and webcast at 4:00 p.m. Pacific Time (7:00 p.m. Eastern Time) today to discuss the agreement. To access the conference call, please dial 888-215-7030 domestic and 913-312-0402 internationally. A replay of the call will be available until midnight, Thursday, June 19, 2008 at 888-203-1112 domestically and 719-457-0820 internationally. Confirmation code for the replay is 4281719. A live audio webcast of the conference call will be available at investor.google.com/webcast.html.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to the expected benefits of our agreement with Yahoo, including Yahoo’s ability to deliver more relevant ads and provide advertisers and publishers with better ad matching technology, the ability of advertisers to better reach consumers, and the ability of Yahoo’s publisher partners to derive more revenue. Actual results may differ materially from the results predicted. The potential risks and uncertainties that could cause actual results to differ include, among others, risks related to the performance of our ad serving technologies, our ability to achieve the goals of our commercial agreement, the parties complying with and fulfilling the terms of the agreement, the ability to hire the appropriate people and our ability to identify and develop the technologies necessary to achieve these goals, as well as those risks and uncertainties included under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations," in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, which is on file with the SEC and is available on our investor relations website at investor.google.com and on the SEC website at www.sec.gov. All information provided in this release is as of June 12, 2008, and Google undertakes no duty to update this information.
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