It looks like Microsoft’s latest bid to purchase Yahoo has fallen through this week. The biggest part of the news though is that Yahoo is partnering with Google for ad sales. Yahoo! has agreed to let Google put search ads on its site, which is a big cash infusion for Yahoo and a HUGE customer for Google. This could be good news as it may eventually involve more integration between Adsense and YPN allowing both companies to pit ads against each other in auctions for the ad that pays the most. Here are a few links to stories about this:

Yahoo Ends Talks With Microsoft, Embraces Google Instead

Yahoo! partners with Google

When Google met Yahoo! – the deal explained

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