By Stephen Shankland
Friday, August 29 2008 10:54 AM
URL: http://www.zdnetasia.com/news/internet/0,39044908,62045510,00.htm

The partnership to place some Google ads next to Yahoo's search results will go into effect by early October, Chief Executive Eric Schmidt told Bloomberg on Thursday, indicating the deal has not been derailed at least so far by antitrust scrutiny.

The companies gave themselves three and a half months to start the partnership when it was announced June 12, and Schmidt's latest comment indicates the deal is still on that schedule. That time period runs through about the first week of October.

"We are going to move forward," Schmidt told Bloomberg Television.

"We are in the process of talking to the government. They've not indicated one way or the other how they're dealing with us," he said of the antitrust scrutiny. "We always worry a little bit, but we think our arguments are pretty strong...Yahoo has made it very, very clear they're going to take the best parts of their network and ours and combine them."

The deal is the most prominent part of Yahoo's effort to become more financially successful. The Internet company said it expects up to US$800 million in revenue and US$250 million to US$450 million in new operating cash flow over the first year of the deal.

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