Yahoo/Google Deal Still in the Works?

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Search giants Yahoo and Google are continuing to talk about a search advertising partnership, but a deal is not coming immediately. Sources familiar with the potential deal have released this news.

Recent rumors have suggested that talks were off due to the fact that Microsoft withdrew its offer to purchase Yahoo. The sources who chose to remain anonymous said the deal between the two companies could come as early as next week, but there is not definite word.

Google and Yahoo began talks just after Microsoft made its offer to buy Yahoo for $44.6 billion dollars a little over three months ago. The deal would consist of Yahoo carrying advertising from Google alongside its own search results.

Yahoo rejected Microsoft’s offer but did search out other alternatives. The company held talks with both Time Warner’s AOL unit and News Corp, but did not reach an agreement with either company.

Microsoft walked away from their offer on May 3rd after Yahoo repeatedly rejected it. They had even raised their offer to $47.5 billion dollars. Since walking away, Microsoft has shown no signs of renewed interest in the company.

Adding even more tension to the situation, Carl Icahn, a billionaire investor in Yahoo, has launched a proxy campaign against the company for rejecting Microsoft’s offer.

Google was concerned of anti trust violations if Yahoo and Microsoft would have reached an agreement, but believes the Yahoo/Google partnership would not have any regulatory issues. Both search companies are in contact with regulators so that any deal would pass all regulations.

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