Yahoo Said Close to Google Deal

SAN FRANCISCO — Yahoo (NASDAQ: YHOO) and Google (NASDAQ: GOOG) are close to reaching a search advertising deal, and talks between Yahoo and Microsoft (NASDAQ: MSFT) about a similar deal have fallen through, people familiar with the matter said on Thursday.

Talks between Microsoft and Yahoo concluded after Yahoo decided to pursue a deal with Google, one of the sources said.

Yahoo also asked Microsoft if it would renew its $33-a-share takeover offer for the Internet company, but Microsoft was not interested, another source said.

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