Yahoo, Microsoft in Ad Partnership Talks

SUNNYVALE/REDMOND: After a series of merger talks last year, Yahoo! and Microsoft have resumed discussions, this time over a potential advertising partnership, reports indicate.

Still at an early stage, the conversations between Microsoft CEO Steve Ballmer and Yahoo!’s new CEO Carol Bartz are said to center on how the two companies can pool their advertising efforts. The scenarios being discussed include one where Microsoft would sell search adds for Yahoo!, while Yahoo! would sell display ads for Microsoft. Both companies have been working hard to take on Google’s dominance in the Internet space. Last year, Microsoft made a failed $47.5-billion hostile takeover bid for Yahoo!. News of the new talks, which emerged late Friday, sent Yahoo’s share price up by 7 percent as the market opened this morning.