Read the full post for more context-setting and some interesting history
So while Google is giving Yahoo a fair bit of aid in the short run, I suspect that it is betting that in the long run this deal is going to sap Yahoo’s ability to build an effective search advertising system. That’s because Yahoo will have even less volume of searches to attract customers, raise bids and give it data with which to improve its ad selection technology.
I do believe that Google’s management very much wants to triumph over Microsoft. And I wouldn’t be surprised if they are getting a bit of extra enjoyment because they are doing so by smiling and passing out money, rather than through the bravado and coercion that has often characterized Microsoft.