Google, Yahoo! May Scrap Ad Deal: Report

Google(GOOG Quote) and Yahoo!(YHOO Quote) are considering walking away as early as next week from the possible formation of a Web-advertising partnership, according to a published report.

The two companies met Thursday with the Justice Department, part of a series of meetings to address the concerns of regulators, and there are signs they are unwilling to make compromises to address the Justice Department's objections, the Wall Street Journal reports.

A Google spokesman said the company continues to have "cooperative discussions with the Department of Justice about this arrangement," according to the newspaper. A Yahoo! spokeswoman said discussions with the Justice Department are "ongoing," adding, "we believe strongly that this agreement will strengthen Yahoo!'s competitive position," the Journal reports. ...