Yahoo Strikes Deal With Google as Microsoft Talks End

Yahoo! Inc. agreed to let Google Inc. sell some of the advertisements it runs alongside Internet searches, seeking to shore up sales after ending talks with Microsoft Corp. about a combination.

The deal may add $800 million a year to sales, Sunnyvale, California-based Yahoo said today in a statement. The companies will delay implementing the program for up to three and a half months to give the U.S. Justice Department time for review.

Yahoo shares sank 10 percent today after the company said talks with Microsoft failed. The partnership with Google may boost the amount of money Yahoo gets when people click on ads, part of Chief Executive Officer Jerry Yang's effort to deflect criticism from investor Carl Icahn, who says Yang scuttled a $47.5 billion bid from Microsoft.

http://www.bloomberg.com/apps/news?pid=20601087&sid=avF0F35yMdoc&refer=worldwide