Yahoo and Google, the world's two biggest search engines, have announced a two-week experiment that will see them share advertising space. During the pilot, Google will be able to place ads alongside 3% of search results on Yahoo's website.
Analysts say the move is designed to frustrate Microsoft, which has offered to buy Yahoo for $44.6bn (Â£22.6bn), or extract a higher offer. The news came as both sides were reported to be forging other alliances.
Microsoft and News Corp are discussing making a joint bid for Yahoo, according to the New York Times. The idea would be to combine three of the world's most visited websites: MySpace, Yahoo and MSN.com. News Corp had previously discussed working with Yahoo to see off Microsoft's offer.
At the same time, Yahoo is looking to Time Warner's AOL to keep out of Microsoft's hands, according to the Wall Street Journal.
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