Yahoo, Google extend deadline to US regulators

By Dawn Kawamoto, CNET News.com
Tuesday, October 21, 2008 01:04 PM

Yahoo and Google have extended the Wednesday deadline for anti-trust regulators to issue a decision on whether to block or allow the controversial search advertising deal to proceed, according to a source familiar with the talks.

And at this point, it remains to be seen whether a definitive decision to block, or allow the agreement with remedies as part of a settlement, will occur before the Thanksgiving holiday.

"Wouldn't it be nice to get it resolved, one way or another, before Thanksgiving," said the source.

Previously, a deadline had been set for Oct. 22 for antitrust regulators to make a decision on whether to challenge the deal, or allow it proceed. That revised deadline was extended from Oct. 8, in order to give regulators additional time to review the search advertising agreement.

Under the agreement, Yahoo's search result pages would also include ads from Google's advertisers. Yahoo previously noted it expects to generate US$800 million in revenue in its first year from the non-exclusive deal and that Google's ads would likely appear on its search pages that have few to no ads from Yahoo advertisers.

But advertisers have previously voiced their opposition to the deal, citing a concerns that prices could potentially rise and that Yahoo may one day opt to exit the search advertising business altogether. Those concerns are similar to those voiced by federal antitrust regulators, sources previously have said.

Although the companies are once again extending the deadline, such a move is somewhat common when the parties are hashing over things. One source had previously noted that companies will often grant regulators as much time as they need to review a deal, rather than forcing their hand, if it appears their decision will be unfavorable to the companies.

This article was first published as a blog on CNET News.com.


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