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Yahoo cuts ad deal with Google

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Sunnyvale, Calif.—Yahoo said it has worked out a deal with Google to run ads supplied by Google’s AdSense alongside Yahoo’s search results and on some of its Web properties in North America.

Meanwhile, Microsoft has said it has ended discussions regarding any sort of deal with Yahoo.

The agreement with Google is nonexclusive, giving Yahoo the ability to display paid search results from the search leader, from other third parties and Yahoo’s own Panama marketplace.

Yahoo said it expects the agreement to generate an estimated $250 million to $450 million in incremental operating cash flow in the first 12 months following implementation.

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