• All Things Digital, Friday, May 9, 2008 11:45 AM

Microsoft has moved on from a potential Yahoo buyout, but has Google walked away from the search deal that may have been the Web giant's saving grace? While The Wall Street Journal is reporting that Google is having second thoughts, Kara Swisher's inside sources at the Googleplex say that the deal still has potential.

"While there is a lively debate going on at the Googleplex over the ramifications of such a deal, it is more likely than not that the search giant will cut some kind of limited and carefully crafted deal with Yahoo," Swisher says.

Still, there are plenty of reasons for Google's hesitation. A number of the giant's top brass are concerned about undergoing further antitrust investigations, particularly in light of Google's recent struggles to get the DoubleClick deal approved and bid on a portion of the wireless spectrum. Meanwhile, others are worried that an in-depth search partnership may give Yahoo the inside scoop on the secrets behind the success of Google's platform.

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