Yahoo President Sue Decker said on Monday that talks with Microsoft were ongoing.
"There are many ways" a combination with Microsoft could be beneficial, Decker said at the Advertising 2.0 conference in New York.
Yahoo has been weighing continued overtures from Microsoft, an advertising partnership with Google and an impending proxy fight waged by activist shareholder Carl Icahn.
Decker said she expected an online ad management platform for newspaper partners to be launched in the second half of 2008 and that the Internet portal intended to be a principal in search as well as display.
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