Yahoo CEO Jerry Yang says that the firm is still open to a Microsoft takeover, despite turning down an offer from the software giant earlier this year, reports AFP. The news comes less than a day after Google pulled out of its proposed advertising deal with Yahoo. “To this day, I would say the best thing for Microsoft is to buy Yahoo,” Yang said yesterday at the Web 2.0 summit in San Francisco. “Did we want to do the deal? Yes.” Last month Microsoft said it now has “no interest in acquiring Yahoo” and that there are “no discussions between the companies”. Long-running talks between Microsoft and Yahoo broke down in May after Yahoo refused to accept a US$33-a-share deal, valuing the firm at roughly US$44.6 billion. Yahoo argued the valuation was too low.

Meanwhile analysts believe the collapse of the Google ad deal this week strikes a blow to Yahoo, which had anticipated making up to US$450 million in operating income in the first year of the partnership. The US Department of Justice ruled against the deal, saying it was anti-competitive and that it would sue to block the alliance. Google says it pulled out of the deal to avoid a protracted legal battle.