Microsoft and Yahoo back in talks?

By on May 19, 2008, 11:40 AM
Earlier this month Microsoft withdrew its takeover offer for Yahoo, as the latter was demanding too high a price. Despite the software giant claiming it had no plans to pursue another deal and had opted for an independent strategy instead, it seems that the Microsoft/Yahoo saga is nowhere near over.

Apparently, Yahoo is back in negotiations with Microsoft prompted by some heavy lobbying by investor Carl Icahn. But while both companies seem willing to re-approach the table, the new deal does not involve buying all of Yahoo. Instead, the two companies are supposedly working out a deal where Microsoft picks up Yahoo’s search advertising business only. Interestingly, this might be a way for Microsoft to spoil talks between Yahoo and Google for a similar partnership.




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