Icahn Sees Merit in Yahoo-Google Deal

On Thursday, Yahoo! revealed that the talks had broken down and that it was not interested in selling its search business to Microsoft. Instead, it hammered out a revenue-sharing agreement with Google, in which Google would place ads alongside Yahoo's search results at Yahoo!'s discretion.

Google has a similar agreement with Ask.com, a division of IAC/InterActive Corp.(IACI Quote) and Time Warner's(TWX Quote)AOL.

Shares of Yahoo! were up less than 1%, or 2 cents, to $23.49 in recent trading. The stock had been plummeting since Thursday as many shareholders grew disenchanted when it became clear that a deal with Microsoft would not be reached.