Yahoo Inc. hopes to join hands with Microsoft Corp. in an online search advertising partnership, even after the past talks have failed.

With the recent release of Google’s second-quarter earnings and revelation by Google executives about returning of the larger advertisers to the Internet, Yahoo has found a new hope of doing better with its second-quarter results.

According to AllThingsD, which cited unnamed people at both companies, both Yahoo and Microsoft have been meeting in the Silicon Valley this week and a deal may go through in the next week.

Yahoo CEO Carol Bartz is hopeful of a fruitful association and expressed her thinking openly. There has been talk about an alliance going on since 2006. Yahoo previous two CEOs, Terry Semel and Jerry Yang, didn’t find a solution that is acceptable to both the parties.

What will a fruitful talk have for Yahoo?

Yahoo will have a lump sum of cash and billions of dollars more in guaranteed payments. The payment is spread over several years. Yahoo will also be able to save at least $500 million if it does not have to run its own search engine.

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