Reaction to demise of Google, Yahoo ad partnership

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Google Inc.'s decision to abandon its proposed advertising partnership with Yahoo Inc. rather than fight a government antitrust challenge sparked reaction from Silicon Valley to Washington to Madison Avenue.

Here is a sampling of reactions:

"The demise of this agreement will likely lead to the demise of Yahoo as an independent company. This is a sad outcome not just for Yahoo, but for the Silicon Valley. The Justice Department's unprecedented investigation of the Google-Yahoo agreement will likely harm the online advertising market and e-commerce." — Rep. Anna Eshoo, D-Calif., who represents Silicon Valley, home to Google and Yahoo.

"After eight years of approving practically every merger that came before it, the Bush Justice Department finally did the right thing. It stopped Google's plans to further consolidate its control over the online advertising business. ... (But) today is a sad day for Yahoo, its founders and its employees. Yahoo is going to have to put up a for-sale sign since there is little room for No. 2 in this business." — Jeff Chester, executive director of the Center for Digital Democracy, a consumer advocacy group.

"Yahoo continues to believe in the benefits of the agreement and is disappointed that Google has elected to withdraw from the agreement rather than defend it in court." — Yahoo corporate statement.

"We're of course disappointed that this deal won't be moving ahead. But we're not going to let the prospect of a lengthy legal battle distract us from our core mission. That would be like trying to drive down the road of innovation with the parking brake on." — David Drummond, Google senior vice president and chief legal officer.

"Yahoo may still be in a position to chart its own destiny, although the overall economy makes all choices harder." — Ed Black, chief executive of the Computer and Communications Industry Association.

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{"commentId":3921428,"authorDomain":"emartens"}

I wonder if Microsoft will consider a new offer, and if so, how much lower than the original will it be?

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    Reply#1 - Wed Nov 5, 2008 6:16 PM EST
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