Google: No advertising deal with Yahoo

Yahoo had been banking on a search advertising alliance with Google, but has been left at the altar. Tech analysts say now it must work out a deal of some kind with Microsoft, whose $47.5 billion takeover offer Yahoo spurned earlier.

On Wednesday, Google dropped out of a proposed partnership that would have shown some Google ads on Yahoo pages. It did so because “it’s clear that government regulators and some advertisers continue to have concerns,” Google Senior Vice President David Drummond said on a company blog.