- Microsoft Ends Talk With Yahoo. Yahoo reached a deal with Google

The Wall Street Journal reported that Microsoft have ended the talks with Yahoo and no longer willing to buy Yahoo for $33 per share.

Yahoo shares closed down $2.65 at $23.50.

Also, the Wall Street Journal reported that Yahoo reached an ad deal with Google that could generate $800 million in annual revenue according to Yahoo.

"Yahoo will control how Google's ads are displayed alongside its own advertising. The pact is sure to face regulatory scrutiny. The companies agreed to delay its implementation for up to three-and-a-half months to allow a Justice Department review.

The agreement seemed to leave room for Yahoo to pursue another deal, including a sale to Microsoft. Yahoo said either party can end the agreement in event of a change in control. If that happens in the next 24 months, Yahoo would have to pay a termination fee of as much as $250 million."

 "Yahoo is being a reseller of Google whenever it makes sense and that is likely to be a lot of the time given how much more effective Google Web search ads have proven to be," Global Crown Capital analyst Martin Pyykkonen said.

- Microsoft reaction to Yahoo/Google ad deal, "Let loose the dogs of war".
The software giant had been honing their knives by giving Google a very hard time over the DoubleC
lick deal–such a difficult time that some Google execs still get visibly furious about Microsoft’s hardball tactics when asked about it.


- Yahoo's Chief Data Officer To Leave The Company
Dr. Usama Fayyad, Yahoo’s chief data officer and EVP of Research & Strategic Data Solutions, is leaving the company, a move that sources say was a long time coming, according to BoomTown.

Also, this morning, Jeff Weiner is also leaving Yahoo to become an entrepreneur in residence at both Accel Partners and Greylock Partners.

- Stock Split 'Unlikely' according to Eric Schmidt.
Eric Schmidt, CEO of Google, told Fox Business in an exclusive interview today  splitting shares of Google is “unlikely,” although “you never say never.”

“We think that a high stock price is a symbol of the kind of shareholder that we want,” Schmidt said, adding that a shareholder who would buy the stock at a high price understands the “long-term vision” of what Google is trying to do.


- LiveSearch is testing a new "page skins" feature on Live.com that allows users to customize the background image of their Live.com home page.

"The background image that LiveSide is reporting on is a part of a test flight. As new ideas come up for testing, Live Search will expose them to a small subset of the user base to see how people respond to them. At this point, we don't have details around when or if this feature will be available permanently, or more broadly."