Yahoo-Google Deal Confirmed

As expected, Yahoo has announced a search ad agreement with Google, just hours after officially ending its Microsoft talks.

The company will now run Google-supplied AdSense ads next to its search results as well as on some of its other Yahoo sites. Yahoo will retain control over where and how the ads appear.

Yahoo predicts the move will bring in $250 million to $450 million in extra revenue.

No word yet what this might mean for the future of Yahoo Publisher, which was originally seen as Yahoo’s answer to AdSense.

The complete announcement is below.