Google to Pay Yahoo $1 Billion per Year?!?

According to this article in MediaPost, Yahoo may begin serving Google AdWords ads on a broader scale than their joint recent test – which could result in Yahoo eventually earning up to $1 billion per year. Besides being a good move for Yahoo and us AdWords advertisers, it’s possible the increased revenue projections will have an impact on the increasingly juicy-to-watch takeover battle Microsoft is mounting – rumored to “go hostile” today.

It’ll be interesting to see what this Google-Yahoo news/rumor will do to Yahoo’s stock price – and Microsoft’s bid…

Update: Microsoft has walked away from the Yahoo deal. But is this just a tactic that positions Microsoft to swoop back in when Yahoo’s stock price drops? Also, Yahoo’s move toward Google may have been the straw that broke the Ballmer’s back.