Yahoo Inc. is surrendering some of its advertising space to Internet search leader Google Inc. in an unusual test that appears designed to frustrate Yahoo’s unsolicited suitor, Microsoft Corp.
The two-week experiment announced Wednesday will allow Google to show ads tied to about three per cent of the queries made in the United States through Yahoo’s search engine - the Internet’s second largest after Google’s.
Yahoo will still use its own technology - acquired and developed at a cost of more than $2 billion - to place ads next to the other search results on its website. The Sunnyvale-based company also will continue to distribute search ads to its own partners. (link)
Yahoo! is not really ’surrendering’ its advertising space. In Google’s blog it is clearly mentioned that Google will not increase it market share or share in the online advertising industry by supplying latest technology to Yahoo