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| Version 0 | Version 1 |
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| Google abandons deal with Yahoo | Google abandons deal with Yahoo |
| (10 minutes later) | |
| Google has decided to abandon its advertising partnership with Yahoo to avoid having a "protracted legal battle" with regulators. | Google has decided to abandon its advertising partnership with Yahoo to avoid having a "protracted legal battle" with regulators. |
| The deal involved Google providing some of the advertising around Yahoo's search results. | The deal involved Google providing some of the advertising around Yahoo's search results. |
| It was originally announced in June but has faced anti-trust objections. | It was originally announced in June but has faced anti-trust objections. |
| It is a blow for Yahoo, which is struggling to placate shareholders who were annoyed about its rejection of a takeover offer from Microsoft. | It is a blow for Yahoo, which is struggling to placate shareholders who were annoyed about its rejection of a takeover offer from Microsoft. |
| Google said it would not allow the prospect of a legal battle to distract it from its core mission. | Google said it would not allow the prospect of a legal battle to distract it from its core mission. |
| "That would be like trying to drive down the road of innovation with the parking brake on," Google said in a blog. | "That would be like trying to drive down the road of innovation with the parking brake on," Google said in a blog. |
| Microsoft offer | |
| Yahoo's management has been under pressure since rejecting the $33 a share offer from Microsoft, which valued the company at $47.5bn (£29.4bn). Yahoo shares were trading at $14 each on Wednesday. | |
| Now that the Google deal has fallen through, Yahoo may find itself having to try to do another deal with Microsoft, although Microsoft has publicly said it is no longer interested. | |
| Carl Icahn, a Yahoo investor who now sits on its board, went as far as to try to sack the entire Yahoo board to try to resurrect the Microsoft deal. | |
| Rising prices | |
| Google and Yahoo are the top two search engines, so regulators at the US Department of Justice were concerned about a tie-up between them. | |
| The two companies had delayed implementing their deal while it was considered by the regulators. | |
| Microsoft and the Association of National Advertisers were among those objecting to the deal on the grounds that Yahoo and Google controlled 80% of the search market between them. | |
| They suggested that the partnership would drive up online advertising rates, although Google rejected this on the grounds that its rates are set by an auction system. |