The deal had been place on hold for quite some time during the investigation of the Department of Justice and Google chose to axe it altogether for fear it might backfire in the near future:

“We feel that the agreement would have been good for publishers, advertisers, and users – as well, of course, for Yahoo! and Google.,” reads the Google policy blog.

“However, after four months of review, including discussions of various possible changes to the agreement, it’s clear that government regulators and some advertisers continue to have concerns about the agreement. Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners. That wouldn’t have been in the long term interests of Google or our users, so we have decided to end the agreement.”

Initially, the deal between the two Internet giants agreed that Google would start providing ads for Yahoo, while Yahoo, on the other hand, would keep selling its own ads, so advertisers wouldn’t feel like they’re dealing with a Goohoo monopoly.

Unfortunately for the two companies, the deal was hit by a DoJ investigation, plus numerous complaints from advertising customers.

Now Yahoo is now alone and Microsoft might be cooking up a new takeover plan. Anyone betting against Carl Icahn coming up with such a proposal at Yahoo’s next board meeting? Nobody? We thought so.