Google, Yahoo Delay Ad Deal

October 5, 2008 1:18 p.m. EST

Washington, D.C. (AHN) - Google Inc. and Yahoo! Inc., two of the world's largest internet search engines, agreed to delay an advertising sales partnership pending the review of anti-trust lawyers from the U.S. Department of Justice.

Reports said that the "brief" delay will be less than a month. The advertising deal, which was announced in June, needs regulatory approval before its implementation.

According to analysts, the delay appears like a withdrawal by Google. Similar anti-trust reviews on the ad deal are ongoing in the EU and Canada.

"The companies have agreed to a brief delay in implementing this agreement to continue our ongoing discussions with the Department of Justice," Google said in an official statement.

"We have had discussions with regulators and look forward to responding to their questions about this agreement," according to Yahoo.

The deal is seen to boost Yahoo sales, whose stock slumped by more than 50 percent from its 52-week high.