Google CEO says Yahoo test good reason to talk

MOUNTAIN VIEW (Reuters) - Yahoo Inc's (YHOO.O) successful test of using Google Inc (GOOG.O) search advertisements is good reason for the companies to discuss cooperation, but there is no deal yet, Google Chief Executive Eric Schmidt said on Thursday.

"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."

But he said he had no specific deal to announce.

(Reporting by Adam Tanner)