steve ballmer And the ridiculousness continues… you’d think companies this size, the size of Yahoo and Microsoft, wouldn’t need to stoop so low, but it’s happening. Yesterday Yahoo announced that they were going to test out Google’s AdSense for their search service. Yes, you read that right, Yahoo is “partnering” with Google. Why would they do such a thing you ask? Well obviously to try and prove a point to their shareholders and to Microsoft.

At this point it’s just a two week limited test. Yahoo will use Google’s AdSense for no more than 3% of Yahoo search queries as part of their effort to “explore strategic alternatives to maximize stockholder value, including exploration of potential commercial business arrangements.” So after the two weeks is up, what will happen? Yahoo says that this “test” doesn’t mean that any type long-term relationship will form, at least not right away.

Of course Microsoft responded to this already in a press release saying:

Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.”

If this “test” happened to lead to a broader type of partnership between Yahoo and Google, it’ll obviously be a pretty hard kick in the stomach for Microsoft.

Thanks for the tip Omar and Google!