As anticipated, Yahoo! Inc. (NASDAQ: YHOO) and Google (NASDAQ: GOOG) announced a deal. The Wall Street Journal reports it's worth between $250 million and $450 million in additional cash flow to Yahoo.
The deal will be delayed a few months for regulatory approval. Under its terms, Yahoo will select which search term queries it offers Google paid search results for, the number and placement of Google results and how they are blended with its own results and those of other providers. Yahoo said either party can end the agreement in the event of a change in control. If control of Yahoo changes hands in the next 24 months, Yahoo must pay a termination fee of $250 million.
Poor Carl Icahn. He could have had a $33 a share deal from Microsoft Corp. (NASDAQ: MSFT), now all he has is 33 cents a share from Google. Cover your ears before his moaning and groaning begins. Yahoo shares are up 1% after hours after losing 10% during regular trading.