Google CEO says "Nice to be working with Yahoo"

SAN FRANCISCO, April 17 (Reuters) - Google Inc's (GOOG.O: Quote, Profile, Research, Stock Buzz) top executive said on Thursday the company was excited to be testing out a partnership to run at least some of rival Yahoo Inc's (YHOO.O: Quote, Profile, Research, Stock Buzz) Web search advertising sales.

But Google Chief Executive Eric Schmidt stopped short of characterizing how far negotiations with Yahoo had gone or how likely they were to lead to an actual business partnership.

Instead, Schimdt had nothing but kind words to say about Yahoo -- Google's erstwhile rival recently turned potential business partner -- during a conference call with investors following the company's first-quarter results.

"It's nice working with Yahoo and we like them very much," Schmidt said of Google's feelings towards its crosstown rival.

He declined to comment further on its ties to Yahoo, which has been seeking to find alternative partners to strengthen its hand in negotiations with Google archrival Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) on the software giant's takeover offer for Yahoo. (Reporting by Eric Auchard; Editing by Braden Reddall)