Microsoft has responded to news earlier today that Yahoo was testing Google Adsense ads on their search results.
From Brad Smith, Microsoft’s General Counsel:
“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.”
The 90% market share in the first line is where the deal may well come unstuck (presuming its expanded). Will Government regulators sit back and allow Google to take a 90% market share through a deal with Yahoo?