Earlier this fall, Google’s Eric Schmidt insisted he was going ahead with the Yahoo search deal with or without approval from the Feds. That pose seemed less convincing when both Google and Yahoo launched PR campaigns aimed at convincing the Feds that they really shouldn’t worry about the search deal. And it seems even less convincing now. Kara Swisher:
Yahoo and Google have agreed to delay their online search ad partnership to give the Justice Department more time to evaluate the deal.
A Yahoo (YHOO) spokesman confirmed the move in a statement: “The companies have agreed to a brief delay in implementing this agreement to continue our ongoing discussions with the Department of Justice. We have had discussions with regulators and look forward to responding to their questions about this agreement.”
Although Google (GOOG) execs have been especially adamant that the arrangement was going forward no matter what, the delay is now not surprising, given the increasing opposition to the deal, involving the #1 and #2 online search leaders, in recent weeks.
The problem has been that more critics have been joining the just-say-no-to-Yahoogle bandwagon–questioning the controversial ad deal for Yahoo to outsource some of its search ads to Google’s aggressive, damn-the-torpedoes approach to pushing the deal forward.
The partnership was set to start up around mid-October and promised to give the much-suffering Yahoo a huge boost in revenues…