The Wall Street Journal is reporting that Google may walk away from its proposed advertising deal.
The Journal is reporting that both Yahoo and Google may walk away from the deal as early as next week because as reported here for some time, the Department Of Justice is looking to block the deal.
On Wednesday, J.P. Morgan Internet analyst Imran Khan, in a note to clients said Yahoo should forget about the Google deal and sell its search business to Microsoft.
Khan suggests that Yahoo can gain an additional $725 million in operating cash flow from outsourcing search to Microsoft.
Khan said: “We think that it is unlikely that the Google/Yahoo search partnership will pass DOJ review in its current form….Without its search business, Yahoo would be very clearly positioned as a content and display advertising entity, thereby clarifying and defining its purpose to advertisers and users.”