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Yahoo hires Google to sell some online ads

(Agencies)
Updated: 2008-06-13 10:00

San Francisco -- Yahoo has hired Internet search leader Google to sell some online ads in hopes of boosting its profit.

The Sunnyvale-based company announced the plans late Thursday after its stock plunged 10 percent on news that its efforts to revive takeover talks with Microsoft had hit a dead end.

Yahoo Inc. is now counting on Google Inc.'s superior moneymaking system to appease its angry shareholders as it tries to fend off a shareholder mutiny being led by activist investor Carl Icahn.

By using Google's superior advertising technology, Yahoo believes it can boost its annual cash flow by $250 million to $450 million in the first year of the deal.

The partnership could last up to 10 years if it can win antitrust approval.