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Yahoo Inc said on Thursday that talks with Microsoft Corp on a partnership or other type of deal have concluded without an agreement, sending Yahoo shares down 13 percent.
Sources familiar with the matter said Yahoo is close to a search deal with Google Inc instead.
Yahoo shares sank to $22.68 on news of the talks breaking apart and the potential Google deal, reported by the Wall Street Journal and the TechCrunch blog. Google rose 0.6 percent at $548.18, while Microsoft rose 3 percent at $28.02.
[edited by: engine at 9:24 pm (utc) on June 12, 2008]
[edit reason] added quote [/edit]
I'm one of the few people I know here @ WW that knows someone who uses Yahoo's ads instead of Adsense. And it's terrible for them. (They are Google haters. It goes back a looooooong way.)
It's not going to help their search traffic - it's not going to help their strategy just put a few dollars in the bank short term.