Yahoo Inc. moved closer to outsourcing its search advertising to Google Inc. after an initial test of the system yielded what the two firms deemed positive results, people familiar with the matter said. A partnership could give Yahoo some needed leverage as it tries to ward off an unwelcome $42 billion bid from Microsoft Corp. Some view the potential pact as mere gamesmanship, particularly in light... 

As it scrambles to avoid defeat in its battle with Microsoft, Yahoo is trying to put a little more time on the clock. Microsoft, whose offer for Yahoo is now worth $41.2 billion, was preparing to escalate its takeover fight by starting a proxy contest next week. But in an effort to delay that move, Yahoo said Wednesday that it was extending the deadline for nominating directors until 10 days after...