Google hints at ad partnership with Yahoo

The comments from chief executive Eric Schmidt and co-founder Sergey Brin follow a two-week shared advertising trial which many analysts saw as an attempt to derail Microsoft's bid for Yahoo.

The two-week test saw Google supplying selective advertisements served to Yahoo search engine users.

"We have been talking to Yahoo and we are very excited to be working with them," said Brin before the company's annual general meeting yesterday.

Schmidt added that the two-week trial with Yahoo had been "successful" and that it formed "a good basis to talk to Yahoo some more".

Wall Street analysts have suggested that Google could enhance annual revenues by as much as $1bn by extending its search advertising system to Yahoo users.

In a thinly veiled attack on Microsoft's attempt to acquire Yahoo, which was ditched last weekend, Brin gave his backing to the use of the joint advertising initiative to thwart Microsoft's ambitions in the search engine arena.

"We believe in companies having choices about their destiny," he said.

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