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Today Yahoo! announced in a press release, and Google in a blog post, that a deal has been struck between the two opposing search giants. The backbone of this deal is that Yahoo! will be serving Google ads on its search results.

At first glance, this seems like strange behavior from the two competitors; but in reality, it actually is a win-win situation for both of them. Yahoo! does not have the inventory of ads to efficiently fill ad space for long tail keywords and such. Google does. Yahoo! will retain the option to show its own ads over Google’s. So Google will basically be filling empty shelf space with their ads. Yahoo! is claiming that this deal will boost cash flow by $250 million to $450 million in the first 12 months. So this is a great move for Yahoo!, whose shares fell by 10% from the fallout of the Microsoft ordeal.

This is also a great strategy for Google because it brings them that much closer to total world domination! What is the saying? The more money you make, the more people want to take it from you? Well the U.S. Senate antitrust subcommittee has already taken notice and have said they will be investigating the deal closely.

We will all be watching closely; because when big moves are being made, it always opens up new opportunities to make more money!