April 9, 2008 / 7:38 PM / 12 years ago

Yahoo in talks to use Google search ads: source

Pedestrians walk past the Time Square Yahoo sign in New York April 7, 2008. REUTERS/Joshua Lott

SAN FRANCISCO/NEW YORK (Reuters) - Yahoo Inc is in advanced talks to carry Web search advertising from Google Inc as part of a search for potential alternatives to being bought by Microsoft Corp, a source familiar with the discussions said on Wednesday.

Yahoo also is still in talks with Time Warner Inc’s AOL about a potential tie-up, the person said.

Shares of Yahoo rose 12 cents to $27.82, Microsoft was up 15 cents to $28.90, and Google shares fell 0.5 percent to $465.00, all on Nasdaq.

Yahoo’s use of Google search would be for a limited test, the source said.

The Google talks were first reported by the Wall Street Journal’s Web site.

Yahoo spokeswomen were unavailable for comment. A Google spokesman declined to comment, saying he was not aware of the story and was not aware if the Wall Street Journal had called his company for comment.

Reporting by Eric Auchard and Anupreeta Das, editing by Richard Chang

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