Google eager to extend ad partnership with Yahoo!

SAN FRANCISCO - Google is keen to extend its advertising partnership with rival Yahoo! following a successful two-week trial.

The search giant sold search ads on Yahoo! last month as part of Yahoo!'s attempt to find alternative options to accepting a takeover bid from Microsoft.

Google's chief executive Eric Schmidt said yesterday at the company's annual meeting that the trial had been "successful".

"That's a good basis to talk to Yahoo! some more," he said.

A deal is yet to be made as has been busy fighting off Microsoft. The software giant withdrew its $44.6bn (£22.6bn) bid to acquire Yahoo! on the weekend after the two failed to agree an acceptable price.

Separately, declined to reveal any further detail about the several new products for video-sharing site YouTube that it is planning to launch in the next few months.

Schmidt, who mentioned the plans earlier this week, remained tight-lipped about the products but revealed that they have not begun initial or beta testing.

He said that getting to make money is Google's top priority for the year.

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