Microsoft and Yahoo once again speaking to each other, with sources saying the latest talks involve a deal short of an acquisition.
"I can tell you categorically that's not happening," one source familiar with the situation said of the possibility of a full-on acquisition to ZDNet.com.au sister site CNET News.com. Earlier in the day, TechCrunch reported that Microsoft was interested in buying all of Yahoo, though at a lower price than the US$33 a share it was once willing to pay.
Another source pointed out that Microsoft's latest statement remains true — basically that Microsoft is not interested in a full purchase but remains open to talking about a search deal.
Yahoo shareholders welcomed Microsoft's interest — shares of the company rose above US$23 a share on Tuesday, though they gave up some of those gains up later in the session, changing hands recently at US$21.82, up 1.7 percent, or 37 cents.
The moves come as Yahoo is gearing up to hit the road with an investor presentation to fend off a proxy bid from Carl Icahn.
News.com's Stephen Shankland and Dawn Kawamoto contributed to this report.
