By: (AP) Internet giant Yahoo! Inc. on Wednesday said its proposed $1.7 billion purchase of online search engine maker Overture Services Inc. has passed a mandatory antitrust review by federal regulators, keeping the deal on course to close by year's end.
Yahoo's cash-and-stock offer still needs the approval of Overture's shareholders. Pasadena, Calif.-based Overture has scheduled an Oct. 7 meeting for the shareholder vote.
By acquiring Overture, Sunnyvale-based Yahoo will gain control over a major source of its revenue, as well as a portfolio of potentially valuable patents covering online search. Overture's search engine generates Web links of advertisers that bid to have their listings displayed alongside search results related to their products and services.
The concept has helped spur a financial revival at Yahoo, which operates one of the Internet's most popular destinations. Overture's search engine accounts for about 20% of Yahoo's revenue.
Yahoo's shares fell 62 cents Wednesday to close at $33.57 on the Nasdaq Stock Market, where Overture's shares declined 37 cents to close at $25.10. Yahoo's stock has more than doubled in value this year while Overture's stock has decreased by 8%.
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