Yahoo and Google retool advertising agreement
Bouncing the ball back to federal antitrust regulators, Yahoo and Google have reportedly revised their search advertising agreement with caps, according to a report in The Wall Street Journal.
According to the report, the companies sent a revised proposal to the Department of Justice over the weekend that calls for such significant changes as limiting the 10-year agreement to 2 years and, more importantly, placing a cap of 25 percent on the amount of revenue Yahoo can generate from Google under the deal.
The controversial search advertising deal calls for Yahoo to place Google's ads on its own relevant search pages. Under the initial deal, Yahoo had hoped to receive $800 million within the first year of the agreement. But whether such a proposal would fly with Department of Justice officials has yet to be seen, given antitrust regulators have wanted a cap closer to the 20 percent range, one source familiar with the discussions told CNET News.
