Yahoo!, Google 'in talks with regulators'

6th May 2008

Anti-trust regulators are being consulted over a potential tie-up between Google and Yahoo!, it has emerged.

Reuters has revealed that a source close to Google confirmed the final details of a deal have not been finalised.

An agreement between the two search pioneers could involve the display of Google ads on Yahoo! search results.

The news comes out after Microsoft abandoned talks with Yahoo! over an acquisition arrangement this weekend.

After talks fell apart, shares in Yahoo fell by 15 per cent, with investors said to be angry at the company's failure to negotiate.

Steve Ballmer, the software company's chief executive, cited the potential of a tie-up between Yahoo! and Google as one motivation for its move away from the deal.

Microsoft raised its offer for the company from $31 (£15) per share to $33 per share, but Yahoo said it wanted $38.

Mr Ballmer had previously expressed his intention not to pay more than he thought Yahoo was worth.