Google Inc may decide to scrap its proposed partnership with Yahoo Inc rather than accept government-imposed antitrust restrictions on it, according to two sources familiar with the companies' discussions.
"Are they more serious about walking away? Yes. Have they decided? I'm not sure," one source told Reuters on Friday.
"Yahoo wants the deal, and they're willing to have Google sign anything at the Justice Department to have them do it," said the source.
A second source said that Google and Yahoo, Nos. 1 and 2 in the Internet search market, could announce as early as Friday that the deal had fallen apart.
Google and Yahoo representatives could not be immediately reached for comment.