Yahoo announces its earning for the quarter and shows a rise of 9% with its revenue $1,818 Million while on the other hand Google just shocked the market with a revenue of $5.19 billion which shocked the market its stock rocketed sky high to a 20% jump never experience previously.

Yahoo & Google friendship seems to last a bit longer as during hard time on Yahoo with the Microsoft roaming around its head with briefcase full of dollars trying to buy out Yahoo, Google was the only company who stood by Yahoo and supported them. Keeping this in mind Yahoo returned the favor to Google by signing up a test outsource search result advertisment to Google. This test also helped Google as its click ration was dropping and there was allot of speculation of loss of stock in this quarter which Google proved it wrong. The test phase of the Google Ads being shown on Yahoo search results seems to end successfully and Yahoo would outsource its search result advertisement to Google.

Previously “Yahoo and Google said last week they would undertake the preliminary test in order to evaluate the potential of a broader search-ad outsourcing arrangement.” A deal between Yahoo and Google will help Yahoo develop a cash flow of more then $1 billion a year, reason being Google’s system generates more revenue as compared to the one developed by Yahoo.

This kind of deal is a setback for Microsoft who is still suffering due to rejection and its sock took a nose dive. On the other hand Yahoo is also looking for a merger of AOL where Time Warner would receive a stake of about 20%.

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