Wednesday, April 9, 2008

Yahoo in talks to use Google search ads

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SAN FRANCISCO/NEW YORK (Reuters) - Yahoo Inc (YHOO.O) is in advanced talks to carry Web search advertising from Google Inc (GOOG.O) as part of a search for potential alternatives to being bought by Microsoft Corp (MSFT.O), a source familiar with the discussions said on Wednesday.

Yahoo also is still in talks with Time Warner Inc's (TWX.N) AOL about a potential tie-up, the person said.

Shares of Yahoo rose 12 cents to $27.82, Microsoft was up 15 cents to $28.90, and Google shares fell 0.5 percent to $465.00, all on Nasdaq.

Yahoo's use of Google search would be for a limited test, the source said.

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