What Does Google See in Yahoo?

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Google (NASDAQ:GOOG) is marching forward with its Internet advertising dominance. This week, the technology giant cemented a partnership with Yahoo (NASDAQ:YHOO) and overhauled its AdWords search advertising platform, a move with the potential to increase its mobile ad revenues.

Yahoo, run by former Google employee Marissa Mayer, announced in a statement seen by TechCrunch that it had signed a nonexclusive agreement to display Google’s advertisements on unspecified Yahoo Web properties “and certain co-branded sites” using Google’s AdSense and AdMob platforms, which together allow the company to serve automatic targeted ads to users on both traditional computers and mobile devices.

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The deal could potentially lead to a closer relationship between Google and Yahoo, reported TechCrunch. Currently, Yahoo has a long-term deal with Microsoft (NASDAQ:MSFT) to handle its search advertising business, but Mayer has publicly expressed her dissatisfaction with the partnership, as users and advertisers get better results from Google…

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