Microsoft, Yahoo Return to Table

Susan Hall

Microsoft and Yahoo have resumed negotiations, but are talking of a deal short of a total acquisition of Yahoo, reports The Wall Street Journal.


The negotiations center around the ads placed next to Yahoo search results -- exactly what Yahoo was testing with Google.


Reuters reports, however, the deal is unlikely to dissuade activist investor Carl Icahn, who initiated a proxy fight for Yahoo last week. The story quotes a source "close to Icahn's thinking" saying:

Microsoft is trying to get the milk without buying the cow, and if you look at Icahn's history, he has never been used that way. He does not want to see Yahoo pushed into some joint venture with Microsoft and is not going to be used to push Yahoo into it.

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