Ad sharing deal postponed, but deal wouldn’t have immediate effect on domain names anyway.
Over the weekend Google (NASDAQ: GOOG) and Yahoo (NASDAQ: YHOO) announced a delay to their planned online advertising sharing agreement to give the U.S. government more time to review the deal.
Although Google and Yahoo provide the bulk of pay-per-click revenue to domain name owners, this deal would have little impact on paid domain name parking in the short run. The pact between the two search giants does not involve parked domains, but does include the content network. (The long run, as Yahoo cozies up to Google, is a different matter).
I personally don’t like this deal at all because of how it weakens Yahoo in the long run. And man, if I were a Yahoo shareholder I’d be really upset that Yahoo didn’t take that Microsoft deal when it could. They lost billions on walking away from that deal.
So why is Google giving the feds time to review the deal, after earlier giving a short time window and saying it shouldn’t be subject to review? The last thing Google wants is for every move it makes to be under review ala Microsoft. That would crimp its growth.
And with one presidential candidate arguing that oil companies should pay a windfall tax on their 8% profit margins, it’s only a matter of time before some socialist politician lays into Google for its 25% profit margin.