Google, Yahoo revise deal to avoide antitrust issues

Google and Yahoo have significantly scaled back the terms of their search advertising deal, in hopes the new deal will be approved by antitrust officials, according to an insider source.

The companies have submitted a new proposal to the US Department of Justice (DoJ), the source told Reuters, in which the length of their partnership will be reduced to just two years.

Under the new proposal, Yahoo will also be limited to collecting no more than 25% of the search revenue, and will include an option for Google advertisers to refuse being placed on Yahoo.

Google was on the verge of walking away from the partnership, believing the deal would be blocked by the DoJ. Yahoo hopes to partner with Google to fend off a takeover attempt from Microsoft.

Meanwhile, two executives have left Yahoo - the head of its US media business, and the general manager of Yahoo news. A number of executives have quit the company in the past few months.

Yahoo has appointed former Microsoft manager Jeff Dossett as the new head of the US media business.