Yahoo! Reveals New Ad System as Microsoft Presses Its Case

Date: 04-08-2008

Yahoo! Inc. has announced plans to release a revolutionary online ad system aimed at simplifying sales of online ads and increasing revenues from the same. The system, called AMP, would allow Yahoo!’s publishing partners to post their own ads on their sites, on Yahoo!, and also on other publishers’ sites. Advertisers and publishers will be able to target specific demographic groups for promotion with the help of the system, the company has promised. Yahoo!’s promotion of the unfinished system is being cited by analysts as a desperate attempt to convince shareholders that the new approach will bring better returns than Microsoft’s unsolicited offer of about $40 billion. Meanwhile, Microsoft Chief Executive Steve Ballmer has threatened to reduce Microsoft’s offer and take its case directly to Yahoo!’s investors if the latter company fails to meet Microsoft’s deadline to accept the bid.

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