Yahoo and Microsoft have extended the deadline to finalise their
search and advertising deal, announced in July.
Yahoo has told the Securities and Exchange Commission (SEC) that
the two companies need more time to finalise the details of the
deal.
The companies had promised to complete the agreement by 27
October, but now need more time because of the "complex nature" of
the transaction, said
reports.
Yahoo and Microsoft claim good progress has been made and say
they are working to finalise the agreements as "expeditiously as
possible", according to the SEC filing.
But no new deadline for reaching a final settlement has been
set.
A high level of scrutiny from US anti-competition authorities
could be delaying the agreement as both parties struggle to find an
acceptable way of structuring the deal.
Regulators blocked Yahoo's proposed deal with Google, but the
deal with Microsoft joins two much smaller companies and was
expected to get easy approval.
But anti-trust experts have warned that US regulators sometimes
oppose mergers between number two and three players.
US authorities have objected to the formation of duopolies in
the past because of concerns of collusion to block all other
competition.