We reported two weeks ago that the Yahoo-Google search advertising partnership was facing
some serious challenges
in its discussions with the Justice Department and, sure enough, it looks like the two search giants
may decide to give up on the deal
. The Wall Street Journal has
that inside sources said that Google and Yahoo may soon announce their decision to drop the deal, after failing to reach an agreement with the Justice Department.
Nothing’s set in stone yet, though, and both companies official positions are still that negotiations are ongoing. Yahoo’s spokesman said “We believe strongly that this agreement will strengthen Yahoo’s competitive position in online advertising.” Google’s spokesman said in statement that “We are confident that the arrangement is beneficial to competition, but we are not going to discuss the details of the process.”
What will it mean for the oft-courted Yahoo if this deal falls through? Hit the jump and tell us what you think.