Well, so much for that last-ditch effort to save Google’s ad-sharing deal with Yahoo. 
In reality, the deal was becoming increasingly doomed. The main reason for the agreement–keeping Microsoft’s hands off Yahoo–was no longer relevant, since Microsoft has continually reiterated its lack of interest (no matter what Steve Ballmer says). And while Google had little to gain from the deal, especially after the most recent proposed changes, it could ill-afford the increased regulatory scrutiny it spawned. As David Drummond says in the blog announcing the end of the deal:
“We’re of course disappointed that this deal won’t be moving ahead. But we’re not going to let the prospect of a lengthy legal battle distract us from our core mission. That would be like trying to drive down the road of innovation with the parking brake on. Google’s continued success depends on staying focused on what we do best: creating useful products for our users and partners.”
And as ZDNet’s Larry Dignam says, the deal has already worked to Google’s advantage, even without being put in place:
“Google’s search rivals–Microsoft and Yahoo–are both weaker today than they were a few months ago. Google’s job is done. Back away from the Yahoo deal gracefully.”
Looks like Google decided to take his advice.
