The transaction fell apart even though the two Internet companies had been close to agreeing on a purchase price, CNBC said.
CNBC reported two weeks ago that Santa Clara, Calif.-based Internet search engine had been negotiating a possible acquisition of eBay or an alliance with the online auctioneer, though analysts said they doubted that the talks would result in a merger or acquisition.
Both companies declined to comment.
"Yahoo does not comment on market speculation or discussions with partners," a Yahoo spokeswoman said.
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