Yahoo Inc. has ended all talks involving a business deal with Microsoft, burying any chance that the software maker might revive its attempt to buy the Internet pioneer. The development, announced Thursday, is expected to lead to an advertising partnership between Yahoo and another rival, Internet search leader Google. That alliance is expected to be announced after the stock market closes. Yahoo shares plunged more than 13 percent on the news.

Microsoft told Yahoo "unequivocally" that it has no interest in renewing a takeover attempt, even at its last offer of $47.5 billion, or $33 per share, according to a Yahoo statement.

Yahoo had sought $37 per share, causing Microsoft to abandon the bid May 3.

But investors still held out hope that Microsoft would come back to the negotiating table, especially when the two sides acknowledged that they had begun exploring a deal involving Yahoo's search operations. Yahoo said Thursday such a deal wouldn't be in its shareholders' best interests.

Shares of Yahoo fell $3.47 to $22.68, after it announced the end of talks with Microsoft.

Microsoft shares jumped 70 cents, or 2.6 percent, to $27.82.

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