The Google Blog has big news -- Google and Yahoo have decided to kill their advertising agreement. The reasons cited are that the government has been reviewing the agreement but they are not happy with it. Further, some advertisers are having problems with it too. Instead of pursuing a legal battle, Google and Yahoo have decided to part ways, which is unfortunate for those who really wanted this to happen.

This is hardly a scratch for Google and many think that Yahoo really is the one that hurts the most. At the end of the day, most reflect back on Yahoo's decision to nix the Microsoft deal and wonder if they would have done that now.

Forum discussion continues at Sphinn.

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