Mountain View giant Google has pulled out of its agreement with fellow search company Yahoo!. A deal between the two would have seen them working together in the field of paid search advertising.In a move described by Yahoo! as "disappointing", Google decided to withdraw from the deal to escape the US Justice Department's decision to file a lawsuit against them, despite Yahoo! having said that it would change its own terms to keep the watchdog happy.
Posting on the search engine's official blog, Google's chief legal counsel, David Drummond, said: "Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners.
"That wouldn't have been in the long-term interests of Google or our users, so we have decided to end the agreement."
While it's true that the deal could have seen Google and Yahoo! create a monopoly over display and paid search advertising, they may have been able to succeed if Yahoo! had been given the chance to further rearrange its terms.
The result could usher in another opportunity for Microsoft to sweep in and pick up the pieces - something that the international corporation has been trying to do for some time now. But after months of wrangling over its hostile takeover bid before rejecting it outright, does Yahoo! now hold a grudge against the software giant?
In fact, all throughout this battle, the only company that looks to have emerged intact is Google. Perhaps this knowledge will see Yahoo! finally giving in to Microsoft and teaming up to become a formidable opponent against the Mountain View kings.
