The Wall Street Journal reports that after the breakdown of Microsoft’s attempts to acquire Yahoo, the search company has turned to Google for an advertising partnership. But, reports the Journal, the deal that “would generate $800 million in annual revenue through improved monetization of certain types of searches” according to Yahoo “is sure to face regulatory scrutiny. The companies agreed to delay its implementation for as many as three and a half months to allow regulatory review.” It’s a shame that the two search giants are holding up such a deal just to give regulators the chance to mess it up.
A shame, but not a surprise. After all, the potentially enormously beneficial XM-Sirius deal has passed the 450 day mark with no end in sight. Even though the Justice Department approved the merger that would allow customers to hear all their favorite premium programming on one network and spur competition in broadcast radio, the FCC is needlessly waiting for Congress to weigh in. Senator Brownback (R-Kansas) is now holding up the deal. The stalling tactics apparently come from a lobbying puppet of the National Association of Broadcasters, which has a strong vested interest in keeping a great new competitor from forming.
Sounds like politics as usual is putting the brakes on many innovative new market arrangements. Let’s hope that Verizon-Alltel doesn’t face such hard times – and that growth and reorganization are not too deterred in the future – but I’m not optimistic.