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(TM) 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.
Google is a registered trademark of Google Inc. All other company and
product names may be trademarks of the respective companies with which
they are associated. 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 http://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 www.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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