Microsoft and Yahoo once again speaking to each other, with sources saying the latest talks involve a deal short of an acquisition.
After talks broke down on Saturday, Microsoft CEO Steve Ballmer sent this letter to Yahoo chief Jerry Yang, signalling the end of the epic takeover attempt.
Although Yahoo executives speaking at an online ad conference on Monday were mum on Microsoft's takeover attempt, they were quick to tease a new feature -- due out this week -- on their home page which could be their rumoured competitor to social news aggregator Digg.
Yahoo may indeed agree to Microsoft's US$44.6 billion bear hug, but it will be over Jerry Yang's dead body.
Microsoft officially withdrew its offer to acquire Yahoo on Saturday but only after it threw an additional US$5 billion on the table.
On Saturday, Microsoft formally withdrew its offer to acquire the search pioneer, at least for now. So what happens next for Yahoo? A deal with Google looks likely.
As Microsoft's deadline for Yahoo to accept its takeover bid passes, the tech world is still waiting for information from either company on their wedding plans.
Nobody, least of all Yahoo and Google, doubted that the two companies' search-advertising deal would escape any antitrust scrutiny.
With Yahoo apparently off the table, what's Microsoft's back-up plan? Try again for Yahoo or go for a new target?
For a man a few months away from leaving his job, Bill Gates has a lot on his mind.
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