According to The Wall Street Journal Yahoo is currently in talks with Google about handling the serving of Yahoo’s search ads, a market where Google has dominated rivals, including Yahoo.
Based on what’s being reported – both companies would start testing while evaluating the potential of a broader outsourcing arrangement.
The notion of outsourcing search advertisements, which would involve Google (GOOG) matching Yahoo search queries with related ads and then splitting the resulting revenue, was floated months ago as a possible alternative to the Microsoft bid.
Citing people familiar with the matter, the report – according to Reuters – said, the discussion was part of Yahoo’s pursuit of alternatives to Microsoft Corp’s unsolicited takeover bid.
Rumor has it that Yahoo has actually been in talks with Google about a search-ad outsourcing deal prior to Microsoft’s bid. Such a move was promoted by many Yahoo investors, who see it as a way to boost revenue while receding from a market where it’s faced daunting competition.
Yahoo spokeswomen were unavailable to comment. A Google spokesman declined to comment, saying he was not aware of the story and was not aware if the Wall Street Journal had called his company for comment.