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Yahoo's Test of Google Ads is Successful, Partnership Progresses

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Yahoo's two week test of Google's search advertising has proved successful, according to the Wall Street Journal, citing “people familiar with the matter.” As a result, a partnership between the two search engines is increasingly likely.

Earlier this week, SearchIgnite released data that Yahoo made gains on Google in the search advertising game. But Yahoo has a long way to go in making significant strides in the search ad game, and they have more immediate issues at hand, namely Microsoft's unsolicited bid to acquire the company.

A partnership with Google appears to be one of many moves in what appears to be an attempt by Yahoo to fend off Microsoft in its unsolicited bid for the company or to raise the offer. Previously, Yahoo released positive revenue projections for the next three years, talked with AOL about a merger, and teamed up with Google to form the OpenSocial Foundation.

For its part, Microsoft began to grow tired waiting, and issued Yahoo an April 26th ultimatum, despite receiving a “no” from Yahoo shortly after the bid was made. And Microsoft may be feeling the pressure, as it has reportedly been talking to News Corp. about assisting in the hostile takeover.

Yahoo releases its first quarter earnings next Tuesday, April 22 at 2pm EST. Google releases its first quarter earnings today at 4:30pm EST.

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