Google Inc. backs Yahoo in its effort to stave off an unsolicited takeover by Microsoft Corp. considering an independent Yahoo will increase competition in the World Wide Web search and advertising markets, Google Chief Executive Eric Schmidt said here Thursday.

“We absolutely support the decision that Yahoo made” in rejecting the Microsoft overture, Schmidt said at the annual Allen & Co. media summit at that Idaho resort. He made the comments during an hourlong interview with reporters. Google co-founders Larry Page

and Sergey Brin were additionally present.

“There is no question in our view that an independent Yahoo is better,” Schmidt It “will supply more competition in search and other advertising markets, in specific in display advertising,” he said.

Google is the leading seller of Web ads, but most of its revenue comes from paid search ads, which seem next to the results of an Web search using Google.

Yahoo, which is […]

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