Yahoo flirts with Google to avoid Microsoft deal

(newscientist) -- As it attempts to avoid a takeover by software giant Microsoft, search company Yahoo has announced plans to allow Google to provide adverts on its web pages.

Microsoft has criticised the deal, saying that by consolidating more than 90% of the online search market it would be anti-competitive monopoly. Google previously voiced its own fears that Microsoft's approach to Yahoo would harm the internet

The Democratic head of the US Senate antitrust subcommittee, Herb Kohl, has said he was watching Yahoo's deal closely to ensure it does not harm competition.

Microsoft threatened on Saturday to launch a hostile bid for Yahoo and could lower its offer in about three weeks if it does not get a deal from Yahoo, which argues it is worth more than Microsoft's $42 billion bid. full story