Google, Yahoo Pact Dead, But `Microhoo

Yahoo CEO Jerry Yang opened the door for renewed talks with Microsoft last week, just one day after Google put the brakes on a planned search partnership between the two companies.

Google notified Yahoo on Nov. 4 that it was pulling out of a search-advertising deal inked earlier in the year, after it became clear the partnership would face heavy scrutiny from U.S. antitrust regulators.

Under the proposed 10-year arrangement forged back in June, Google was to provide search ads for a select number of queries on Yahoo!, which expected to pull in an additional $250 million to $450 million as a result.

Soon after the deal was nixed, J.P. Morgan analyst Imran Khan, on Nov. 5, issued a note urging Yahoo! to outsource search to Microsoft, to focus on its display-ad business.

Then, the following day, at the Web 2.0 Summit in San Francisco, Yang was quoted as saying that he believed the best thing for Microsoft would be to acquire Yahoo