In a television interview with FOX Business Network’s Peter Barnes, Tim Armstrong, President of North American Advertising and Sales for Google, gave his company’s first reaction to the potential deal between Microsoft and Yahoo.
From Fox Business

On whether Google is nervous about potential deal between Microsoft and Yahoo:

“I don’t think so. We had our quarterly results last night. We feel the Internet is a big, healthy environment for us and I think we feel confident in our business and the decisions we’re making. We’re more nervous about making sure we stay focused ourselves.”

“I think we compete against both of those companies. We also partner with both of those companies so we’ll be as interested as anyone about what the outcome is.”

On Google’s earnings:

“From the investor side, I think a lot of investors have their opinions about that. From a company perspective, I think we’re happy with the growth and fifty-one percent year-over-year is strong. We’re looking forward to 2008 and we have clear plans and goals for the company.”