Yahoo: Google tie-up remains preferred option

Yahoo Inc's leaders defended online search leader Google Inc as a more desirable partner than Microsoft Corp in a letter that affirmed the Internet pioneer's commitment to a strategy that has alienated shareholders.

Yahoo embraced its planned advertising partnership with Google amid reports that it had revived talks about a possible deal with Microsoft. The report, based information from unnamed people, surfaced despite Yahoo's repeated rejection of the software maker since their tense mating dance began nearly five months ago.

Although Yahoo's letter on Wednesday (local time) didn't completely rule out a Microsoft deal, it stressed that working with Google remains the best option on the table.