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share last week, hoping to combine forces to compete with Google Inc in the growing Internet advertising market. But Yahoo refused to go below $37, causing the talks to fall through.
Yahoo is under pressure from shareholders to come up with an alternative deal, and had conducted a two-week test to outsource Web search advertisements to Google.
Google Chief Executive Eric Schmidt said the test provided good reason for the companies to discuss cooperation, but there was no deal yet.
"We view the test as successful," Schmidt said before the Web company's annual meeting on Thursday. "That's a good basis to talk to Yahoo some more."...
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