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Editor: Matt Paines

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Yahoo! to trial Google ads

Yahoo! has struck a deal with Google to serve up adverts sold through its arch-rival's AdSense system on its own results pages.
 
The idea, which will be trialled over a period of two weeks, is being touted as a way of exploring the possibilities of closer cooperation between the two search giants in the future.
 
However, US competition law is likely to restrict any closer involvement between the two parties, who handle 80% of all US search queries between them.
 
And experts are saying the move is just another Yahoo! tactic designed to beat away Microsoft's increasingly aggressive takeover advances.
 
Standard and Poors equity analyst, Scott Kessler, said that by flirting with Google Yahoo! was trying to send out a message that it had options, other than the Microsoft takeover, at its disposal.
 
He said it didn't make a lot of sense for Yahoo! to make an announcement like this when everyone knew a long-term relationship with Google couldn't happen.
 
Kessler also said it struck him as somewhat desperate.

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