On February 1, Google implemented new rules for application and toolbar distribution through its third-party ad products (Adwords and Adsense). The most onerous of these new “rules” requires that homepage conversions be “opt in” versus “opt out” previously […] Based on our channels checks, toolbar/application companies have shifted 50%-90% of their traffic to other search providers, with Yahoo being the biggest beneficiary. For the sake of our Google model, we are lowering our estimates to reflect the low end or a 50% reduction from non-exclusive partners. This equates to $1.3 billion, or 3% of total core net revenue.
Time to short IACI?