Yahoo announced yesterday that it will engage in a two-week test of Google’s AdSense for search service.
The test will only apply to US-based traffic from yahoo.com and will be limited to no more than 3% of search queries, the company said. Yahoo’s network affiliate and premium publisher partners will not be included in the test. According to Yahoo, the test is one way the company’s board of directors is “exploring strategic alternatives to maximize shareholder value.”
In response to the news, Microsoft’s general counsel Brad Smith released the following statement:
“Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.”