search advertising – Adwords Consultant India : DigitalSRC https://digitalsrc.com/blog Sat, 14 Jun 2008 17:18:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.6.17 Yahoo to Pay $250 Million to Google For Break Up https://digitalsrc.com/blog/yahoo-to-pay-250-million-to-google-for-break-up/ https://digitalsrc.com/blog/yahoo-to-pay-250-million-to-google-for-break-up/#respond Sat, 14 Jun 2008 17:18:00 +0000 http://digitalsrc.com/blog/yahoo-to-pay-250-million-to-google-for-break-up/ Yahoo has agreed to pay Google a break up fee of $250 million if the partnership falls apart within the first two years. “If the Services Agreement is terminated by either party within 24 months … Yahoo! is required to pay to Google the sum of $250,000,000…” It is indeed a matter of speculation why […]

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]]> Yahoo has agreed to pay Google a break up fee of $250 million if the partnership falls apart within the first two years.

“If the Services Agreement is terminated by either party within 24 months … Yahoo! is required to pay to Google the sum of $250,000,000…”

It is indeed a matter of speculation why Yahoo could not negotiate a better deal. Yahoo anticipates a revenue of $250-$450 million in operating cash flow in the first 12 months following implementation. In terms of profit this deal can actually lead to a loss for Yahoo.

This deal would also be a big step for Google in obtaining virtual monopoly in the search advertising market and Yahoo would become completely dependent on Google for search advertising revenue.

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