Wired PR News.com – Internet giant Google announced an end to its deal with Yahoo on Wednesday, which means an uncertain fate for its struggling competitor, as reported by the Associated Press (AP). The Internet advertisement pairing was said to potentially lead to a controversial legal battle that would have put the company’s massive market power on display.
Yahoo was reportedly relying on the deal for a financial boost to alleviate some of the pressure from shareholders to sell the company to Microsoft in a massive $47.5 billion deal. Google’s decision to not proceed with the deal is stated to be attributed to threats by the U.S. Justice Department to take legal action due to issues with unfair competition that would result from the partnership.
According to Attorney General Thomas Barret, as stated in the AP report, “The arrangement likely would have denied consumers the benefits of competition — lower prices, better service and greater innovation.”
Yahoo’s plummeting stock prices combined with the lack of a Google partnership in their future has many questioning whether the company will now feel pressured into reconsidering the Microsoft takeover.