Yahoo to test of Google's AdSense service

Yahoo Inc. has announced that it will begin a limited test of Google Inc.'s AdSense for Search service, which will deliver relevant Google ads alongside Yahoo!'s own search results. The test will apply only to traffic from yahoo.com in the United States and will not include Yahoo's extended network of affiliate or premium publisher partners. The test will last up to two weeks and will be limited to no more than 3 percent of Yahoo search queries.

As previously announced, Yahoo's board of directors is finding alternatives to maximize stockholder value, including exploration of potential commercial business arrangements. The company noted that the testing does not necessarily mean that Yahoo will join the AdSense for Search program or that any further commercial relationship with Google will result. Yahoo said that it would not comment on the nature or timing of any potential relationship.

Microsoft's comment
Meanwhile, reacting to Yahoo's announcement of the AdSense arrangement with Google, Brad Smith, Microsoft Corp.'s general counsel, issued the following statement: "Any definitive agreement between Yahoo and Google would consolidate over 90 percent of the search advertising market in Google's hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo. We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers and consumers."