Sunnyvale, Calif. - Shares of Yahoo (NASD: YHOO) plunged 10% on Thursday after the company announced that its acquisition talks with Microsoft (NASD: MSFT) have concluded without a deal. The company, however, is reportedly close to announcing a search deal with Google (NASD: GOOG), according to several sources.

Yahoo said in a statement that it took part in "numerous" meetings with Microsoft about potential transactions, including one on June 8 attended by Yahoo Chairman Roy Bostock and other board members.

"At that meeting, Microsoft representatives stated unequivocally that Microsoft is not interested in pursuing an acquisition of all of Yahoo, even at the price range it had previously suggested," Yahoo said.

The company also said that it has declined an offer to sell its search business to Microsoft.

With Microsoft apparently at an end, Yahoo is now expected to unveil a major advertising pact with Google.

The Wall Street Journal reported that the deal would likely involve Yahoo outsourcing its search advertising to Google.

The companies recently conducted a limited test of Google ads against Yahoo search results, which drew the attention of an antitrust probe from the Justice Dept.

Related Links:
http://biz.yahoo.com/bw/080612/20080612006082.html?.v=1

http://biz.yahoo.com/rb/080612/yahoo_microsoft.html?.v=1

http://online.wsj.com/article/SB121329534659368693.html

http://snipurl.com/2gj8d (TechCrunch)