In the tech world, archenemies will still find ways to work together on deals. It’s known as “co-opetition.”
An example of this is today’s announcement of an agreement for Google (NASDAQ:GOOG) to serve ads on Yahoo’s (NASDAQ:YHOO) sites and mobile apps.
For the most part, it’s an indication that Yahoo’s new CEO, Marissa Mayer, is getting aggressive with renewing growth. That is, by teaming up with Google, she’ll get access to high-value ads. Keep in mind that a partnership with Microsoft’s (NASDAQ:MSFT) Bing has so far underperformed.
In fact, Mayer recently noted that a key strategy for Yahoo will be partnerships. So, it’s a good bet we’ll see deals with other mega-operators like Apple (NASDAQ:AAPL) and even Facebook (NASDAQ:FB).
And yes, it appears that investors like the Google deal. So far in today’s trading, YHOO shares are up about 2% to $20.20.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.