After numerous failed attempts at striking a business deal, Microsoft and Yahoo are at it again, according to an All Things Digital report. It would seem several of Microsoft’s top execs have taken flight to Silicon Valley and are brushing shoulders with Yahoo’s finest. Redmond’s crew consists of Yusuf Mehdi, Satya Nadella, and Qi Lu – CEO Steve Ballmer is involved but not physically present.

The report claims that the two companies are very close to agreeing on a search and advertising deal. If you recall back to their interviews at the D: All Things Digital conference, Yahoo CEO Carol Bartz and Microsoft CEO Steve Ballmer acknowledged that the two companies were in active discussion. Although Bartz said that she would sell if the price were right, Ballmer has expressed no recent interest in an outright acquisition.

Very few details are known about what’s really happening behind the scenes as the companies have mostly remained silent. It is suspected though, that Microsoft might pay Yahoo several billion dollars upfront to take over its search advertising business and guarantee certain payments back to Yahoo. Website 24/7 Wallstreet has reported that a deal is “imminent”.

Let’s hear your predictions, rants and conspiracy theories in the comments.