The Yahoo-Google ad deal looks like it’s dead.  The deal announced in June, would have allowed Google ads to appear on Yahoo search results.  Yahoo estimated an $800 million profit during the frist year of the Google ad partnership and would have allowed Yahoo to continue its transion from search to content provider, making it a much more competitive company.

What has likely killed the deal?  As stated in a Reuters article:

The two Internet companies have so far failed to reach an agreement with the U.S. Department of Justice on implementing their search advertising partnership.

Why doesn’t the DoJ approve the non-exclusive agreement?  Becuase of concerns over competition, that this will reduce competition in the internet marketplace.  Anyone following Yahoo, however, knows that Yahoo is becoming less and less competitive as a search provider, but it’s attempts to become more competitive and focus on providing content, something it is much better at than google, are being stymied by government regulation.