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The Rank for $ales Weekly Newsletter, page 4

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(Continued)

Yahoo had a warrant to purchase 3.7 million shares, but Google claimed the 1.2 million shares it issued to Yahoo followed a conversion provision in the agreement. Yahoo protested the lowered amount.

In news on Tuesday, the growth rate for paid advertising search revenues will significantly slow in the next six years, said JupiterResearch on Monday. But that doesn't mean it's going away. Paid search will continue to grow faster than any other sector of online advertising, increasing from $2.6 billion in 2004 to $5.5 billion in 2009, according to Nate Elliott and Niki Scevak, lead analysts on the research firm's new report.

That growth, however, is likely to be spurred by price increases. "A sharp increase in the average cost-per-click is the primary driver of this market, with incremental growth in the number of searches also driving spending," the report said. Some analysts interpret this as bad news for Google , whose revenues have soared as it capitalized on the paid search business.

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