Google sees YouTube products soon

MOUNTAIN VIEW, California (Reuters) - Google Inc expects to launch new products for its YouTube Web video service in the next few months and sees reason for closer cooperation with Yahoo Inc (YHOO.O: Quote, Profile, Research, Stock Buzz), Google Chief Executive Eric Schmidt said on Thursday.

Schmidt has said getting the video service to make money is the Web search company's top priority for the year. He did not give details of the products, however, and they are not even in initial, or beta, testing.

Google briefly sold search advertisements on rival Yahoo last month, while Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) was attempting to buy Yahoo.

Schmidt said the two-week test provided good reason for the companies to discuss cooperation, but there was no deal yet.

"We view the test as successful," he told reporters before the Web company's annual meeting. "That's a good basis to talk to Yahoo some more."

(Reporting by Adam Tanner; Editing by Peter Henderson and Braden Reddall)