Will This New Ad Trifecta Challenge Google?

Yahoo! Inc (NASDAQ:YHOO), Microsoft Corp (NASDAQ:MSFT) and AOL Inc (NYSE:AOL) have formed an advertising alliance to challenge Google (NASDAQ:GOOG). The three companies will sell each other’s display ads early next year. These types of ads appear on Web pages and attract marketers looking to brand either their product or services; they come with high rates.

According to a joint press release, the alliance will provide a number of benefits. This includes an improved process to buy and sell premium online display inventory, expanded offerings of premium nonreserved online display inventory and an enhanced demand for and value of the company’s display advertising offerings. Publishers and advertisers will also see a better yield.

Ross Levinsohn, Yahoo! executive vice president America said of the alliance, “We’re thrilled to partner with Microsoft (NASDAQ:MSFT) and AOL (NYSE:AOL) and bring to market what we believe will be a more efficient, effective and more effortless way to access true premium inventory and formats. There has a been a significant shift in how inventory is bought and sold, and we’re now 100 percent focused on controlling our own destiny, working directly with marketers and agencies and driving better returns for our advertising partners.”

Here’s how these stocks are trading now:

  • Yahoo! Inc. (NASDAQ:YHOO): The shares recently traded at $16.05, up $0.08, or 0.5%. Its market capitalization is $20.21 billion. They have traded in a 52-week range of $11.09 to $18.84. Volume today was 36,829,044 shares versus a 3-month average volume of 35,463,300 shares. The company’s trailing P/E is 19.52, while trailing earnings are $0.82 per share. About the company: Yahoo! Inc. is a global Internet media company that offers an online guide to Web navigation, aggregated information content, communication services, and commerce. The Company’s site includes a hierarchical, subject-based directory of Web sites, which enables users to locate and access information and services through hypertext links included in the directory. Get the most recent company news and stock data here >>
  • Microsoft Corporation (NASDAQ:MSFT): The shares recently traded at $26.17, down $0.99, or 3.65%. Its market capitalization is $220.15 billion. They have traded in a 52-week range of $23.65 to $29.46. Volume today was 45,193,788 shares versus a 3-month average volume of 62,569,600 shares. The company’s trailing P/E is 9.51, while trailing earnings are $2.75 per share. The company pays a dividend of $0.80 per share for a dividend yield of 3.00%. About the company: Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and intranet software. Microsoft also develops video game consoles and digital music entertainment devices. Get the most recent company news and stock data here >>
  • AOL, Inc. (NYSE:AOL): The shares recently traded at $15.16, down $0.57, or 3.62%. Its market capitalization is $1.62 billion. They have traded in a 52-week range of $10.06 to $27.19. Volume today was 1,397,933 shares versus a 3-month average volume of 2,967,790 shares. The company’s trailing P/E is 28.77, while trailing earnings are $0.53 per share. About the company: AOL Inc is a web services company. The Company’s business spans online content, products and services that the company offers consumers, publishers and advertisers. AOL focuses on attracting consumers and providing online advertising services on company owned and operated properties as well as third party websites. AOL also operates an internet subscription access service. Get the most recent company news and stock data here >>
  • Google Inc. (NASDAQ:GOOG): The shares recently traded at $601.85, down $10.49, or 1.71%. Its market capitalization is $194.93 billion. They have traded in a 52-week range of $473.02 to $642.96. Volume today was 2,953,980 shares versus a 3-month average volume of 3,604,700 shares. The company’s trailing P/E is 20.52, while trailing earnings are $29.34 per share. About the company: Google Inc. is a global technology company that provides a web based search engine through its website. The Company offers a wide range of search options, including web, image, groups, directory, and news searches. Get the most recent company news and stock data here >>

Don’t Miss: Adobe Caves to HTML5 Dominance in the Mobile Market.