Under a proposed partnership, Google would let Yahoo use its more sophisticated ad technology to deliver ads next to some Yahoo search results. By some estimates this could bring Yahoo $1 billion a year in added cash.
If they strike a deal, the No. 2 company in search ads would hand over some of its business to the dominant company in that market. When asked about the issues this would raise in a meeting with reporters this month, Eric E. Schmidt, Google’s chief executive, offered only a cryptic reply: “We would anticipate structuring a deal to address antitrust concerns.”