Odds Dim for Alliance of Google And Yahoo

The prospects for a Web-advertising partnership between Google Inc. and Yahoo Inc. have dimmed, with both sides considering walking away from the deal as early as next week, say people familiar with the matter. The two companies met Thursday with the Justice Department, part of a series of meetings to address the concerns of regulators. While the parties may agree to continue the talks -- or they could reach a resolution -- there are signs they are unwilling to make compromises to address the Justice Department's objections. The option to scrap the deal has been on the table before, but Google in particular has begun considering it more seriously as Justice Department talks haven't progressed. One sticking point has been the department's discussion of having the companies sign a consent decree stating the terms of the partnership. That would subject their compliance to continuing oversight by a judge.