Search engine giant Google Inc formally announced its withdrawal from much anticipated advertisement partnership with Yahoo Inc.

In a blog post Google said that it is withdrawing from the deal because it is getting delayed due to legal battle and it is affecting Google's relationship with valued partners.

Google's withdrawal is a major setback to beleaguered Yahoo as it has been counting the deal for increasing its revenue.

When Yahoo stock value was at $28 Microsoft came out with a deal to buy Yahoo at $33 per share. But Yahoo demanded for $37. Finally Yahoo rejected the deal and decided to make a deal with Google for advertisement partnership.

Now Google pulled out from the deal and Yahoo's share value plunged to $13 per share due to global economic meltdown.