Yahoo has added Virgin Mobile UK to its list of operator customers that have set the company’s oneSearch service as their pre-installed mobile search application. The deal gives Yahoo access to Virgin’s 4 million UK customers and takes its number of operator partnerships to 70, according to a Reuters report. The report cites Mitch Lazar, head of Yahoo’s mobile operations in Europe, as stating  that the company’s next key target markets in Europe are France, Germany, Italy and Spain. Reuters notes that Yahoo is hoping to steal a lead on rival Google in the nascent mobile search and advertising markets, having lost the battle for dominance in the desktop computer search market. Previous high-profile mobile operator deals for Yahoo’s oneSearch service include T-Mobile USA and AT&T. However, a recent report from comScore M:Metrics found that Google is currently the preferred brand for mobile browser-based searches in the US and western Europe.

In separate news, The Sunday Times reported yesterday that Microsoft is in talks with Yahoo to buy the US Internet company’s online search business for US$20 billion. Earlier this year Microsoft withdrew its US$47.5 billion buyout offer for the whole company after Yahoo chief executive Jerry Yang and his board rejected the bid as too low. Meanwhile Yahoo’s managing director and SVP of Europe and Canada, Tobey Coppel, is reportedly stepping down after 18 months in the position. Coppel will be replaced by Rich Riley, who currently works for Yahoo’s European advertising division. The move is the latest in a string of departures from the troubled Internet giant and comes after Jerry Yang announced he is quitting as CEO last month.