According to a report issued by investment firm Standard & Poor’s Equity Research division, paid advertising generated by Yahoo Search Marketing will soon replace ads generated by Google AdWords on the Washington Post newspaper website which is owned and operated by a diversified media network known as the Washington Post Company.
The deal will also see Yahoo search functions appearing on the Washington Post newspaper site. The S&P report reiterated a buy rating on Yahoo stocks but also precipitated a hold rating on Google stock.
“Although we do not believe this shift will have a material impact on either company’s financials, we think it underscores the increasingly competitive environment in online search services,” S&P Equity Research said. “Our opinions on Yahoo! and Google in part reflect their diversification beyond the Internet search segment.”