Google, Yahoo agree to delay ad deal

Although Google CEO Eric Schmidt declared this summer that his company’s ad-sharing deal

with Yahoo would go full speed ahead as scheduled this month, despite an ongoing investigation by the U.S. Department of Justice, it looks like he’s thought better of that course of action. Both Yahoo and Google announced that they would delay the deal a bit longer, as the DOJ continues to mull its options. The short delay, however, is expected to last no more than a month, and the deal could conceivably go into effect by the end of October.

Both Google and Yahoo spin the delay as a simple measure to ensure that the DOJ has ample time to consider (and presumably bless) the deal. As Yahoo says:

“The companies have agreed to a brief delay in implementing this agreement to continue our ongoing discussions with the (U.S.) Department of Justice. We have had discussions with regulators and look forward to responding to their questions about this agreement.”

Google offered similar sentiments:

“When we announced our advertising agreement with Yahoo in June we agreed to delay its implementation until October to give regulators time to look at the details. As we are still in conversation with the Department of Justice, we have agreed to a brief delay in implementing the agreement while those discussions continue.”

It’s a smart move, much smarter than launching the deal only to be hit later with an antitrust lawsuit. While the DOJ has been awash in arguments both for and against the deal, it hasn’t yet tipped it hand on whether it plans to block it. And both Google and Yahoo realize that in such an environment, it’s best not to rock the boat. No action is usually the best action.