After the failed deal with Google it looks as if Yahoo is now trying to get back in Microsoft's good books and hoping they can get bought out by the big boys from Redmond.

At a Web 2.0 conference Jerry Yang made the statement: "To this day, I'd say the best thing for Microsoft to do is buy Yahoo."

Best for Microsoft or best for Jerry Yang is the real question.

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It is not clear whether Yang's comments were prompted by the collapse of the agreement between his firm and the mighty Gurgle. The pair wanted team up on search advertising but Gurgle pulled out yesterday.

"It's clear that government regulators and some advertisers continue to have concerns about the agreement," said the outfit. "Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners. That wouldn't have been in the long term interests of Google or our users, so we have decided to end the agreement."