About Technology – Google abandons deal with Yahoo

About Technology –

The collapse of the deal is a blow for Yahoo

Google has decided to abandon its advertising partnership with Yahoo to avoid having a “protracted legal battle” with regulators.

The deal involved Google providing some of the advertising around Yahoo’s search results.

It was originally announced in June but has faced anti-trust objections.

It is a blow for Yahoo, which is struggling to placate shareholders who were annoyed about its rejection of a takeover offer from Microsoft.

Yahoo’s management has been under pressure since rejecting the $33 a share offer, which valued the company at $47.5bn (£29.4bn). Yahoo shares were trading at $14 each on Wednesday.

Google said it would not allow the prospect of a legal battle to distract it from its core mission.

“That would be like trying to drive down the road of innovation with the parking brake on,” Google said in a blog.