Recently, Microsoft ended the advertising relationship with Yahoo's Overture but expressed interested in acquiring a stake in Yahoo's search business. Yahoo has however rejected the proposal.
When it comes to Google, Yahoo does lament a missed opportunity. During the initial days of Google, when Larry and Page and Sergey Bin approached Yahoo investors for a funding, Yahoo wanted to buy Google for $1 billion but the Google founders wanted $3 billion. The deal never went through and the rest is history.
Meanwhile, Microsoft CEO Steve Ballmer has accepted that MSN advertising business trails behind Google, Yahoo and it might take 5 years to catch the advertising giants. "We are a little bit late in the game," Ballmer said.
Find this article at: http://labnol.blogspot.com/2006/05/yahoo-to-microsoft-well-fight-google.html
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