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Thursday, November 06, 2008
Yahoo Looks at Microsoft As Google Walks Away From Ad Deal


Now that the advertising partnership with Google is off the table, Yahoo CEO Jerry Yang is ready return to the bargaining table with Microsoft.

Yahoo's Chief Executive Jerry Yang said he believes a deal between the two is still the best option for Yahoo.

Speaking at the Web 2.0 Summit hours after Google ditched its search advertising partnership with Yahoo, Yang said he remains open to selling the Internet company to Microsoft, but at the right price.

"People who know me know I don't have an ego about remaining independent versus not remaining independent," the executive told the gathering, Reuters reported today.

Yang also said he remains "open-minded" about selling Yahoo's search business to Microsoft, but noted that there was no "new news" on talks between the two companies.

Microsoft had offered to buy Yahoo's search business after withdrawing an offer for the whole company in May.

Yahoo's stock price is currently trading far below the $31-a-share Microsoft originally offered, and the company has come under severe criticism from investors for turning down the software giant's offer.

But some Yahoo shareholders are still interested in some sort of Microsoft deal, and despite Microsoft's current stance that it doesn't need Yahoo to challenge Google.

Yang also said he was disappointed at Google's decision to walk away from the search pact. The two companies signed the deal in June when Yahoo was looking for ways to build an independent growth strategy.

Google announced its decision to withdraw from the partnership with Yahoo on Wednesday, concerned that the U.S. Department of Justice would block the agreement on antitrust grounds.


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