Google Ads through Yahoo!?

I was surprised to see Yahoo! getting into bed with Google and setting up a deal which sees the big G's ads cropping up within Yahoo's results.

Image via CrunchBase

Initially this is only set to run across the pond, but it makes me think this could be the beginning of the end for Yahoo!

Let's face it... when you get in to a situation where you're ready to let your biggest competitor have a presence in your site, how far must you be from hanging your gloves up? Microsoft's u-turn on the original deal must have left Yahoo! even more vulnerable than initially thought.