> "Sounds like they're doing everything possible to keep their search business" Search isn't a business without the ads. The Google deal basically lets Google

> "Sounds like they're doing everything possible to keep their search business" Search isn't a business without the ads. The Google deal basically lets Google place ads on Yahoo search results, if they can get a higher price. As a result of its market leadership position, Google commands higher rates for ads. Now that they're deploying ads in Yahoo results, they will get even better at selling ads, pushing rates up further. Since Yahoo is selling less ads, they will get more dependent on Google to monetize their search. The eventual case is that Yahoo outsources search advertising to Google, and Google has a virtual monopoly on search ads. Advertisers will hate this.