This just in from the Journal(sub required):
Google Inc. and Yahoo Inc. settled disputes over patents and service agreements, with Google agreeing to issue 2.7 million shares to Yahoo.
Google warned that it will take a charge of $260 million and $290 million related to the settlement, which will lead it to post a net loss for the current quarter.
Google agreed to license a patent held by Yahoo’s Overture unit related to the way advertisements are attached to search results. Such advertising is a lucrative part of Google’s business, and Yahoo had filed a patent lawsuit alleging that Google was inappropriately using a system developed by Overture. As part of Monday’s agreement, Yahoo agreed to drop that lawsuit.
Yow. More to come.