Schmidt: Google will explore further Yahoo collaboration

Google will continue to consider co-operation with long-term rival Yahoo, according to chief executive Eric Schmidt.

Last month Yahoo began a two-week trial of running adverts provided by the Mountain View firm. The test-run took place during a pivotal stage in Microsoft's attempt to purchase the search giant, a bid that collapsed earlier this week.

And while the advert trial has now finished, Google has indicated that it may pursue further collaborations with Yahoo.

"We view the test as successful," said Schmidt, speaking just before Google's annual shareholder meeting. "That's a good basis to talk to Yahoo some more."

Schmidt also said that any future partnership would be structured to meet anti-trust concerns.

Google also announced that generating new revenues from YouTube would be a key part of its strategy for the year ahead. But the video sharing site, and the recently-purchased DoubleClick advertising firm, will take time to become profitable, said Google co-founder Sergey Brin.

"They both have potential, but for it to be a sizable part of our revenue, you're going to have to wait at least a couple of years," he said.

See also:

Microsoft looks into Facebook purchase

Rumour mill goes into overdrive that the software giant is interested in a takeover, following the collapse of Yahoo talks  08 May 2008

Yahoo shares plummet after Microsoft deal collapses

But the door to further negotiation is still open, says chief executive Jerry Yang  06 May 2008

Google and Microsoft to fuel mobile innovation

The arrival of the giants will open up the sector to Web 2.0 style services  23 Apr 2008

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