Business Services Industry

Big Yahoo! payout will put Google in the red.

Knight Ridder/Tribune Business News, August, 2004

By Nick Moss, Daily Mail, London Knight Ridder/Tribune Business News

Aug. 10--Google's troubles grew as it warned it would slump to a third-quarter loss after agreeing a multi-million pound payout to settle a dispute with rival Yahoo!

The internet search engine resolved a row over patents by giving Yahoo! 2.7m shares. Google will record a hit of UKpound 150m, reflecting the value of the shares after flotation and a licensing deal, and said it was "pleased" with the settlement.

But it raises fresh doubts ahead of the planned UKpound 19.5 billion float. Jupiter Research added to Google's woes.

It said growth in online advertising -- a key earner for Google -- will slow to 11 percent in 2009, from 63 percent in 2003.

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