Microsoft wants Yahoo

Despite Yahoo's earlier confirmation that talks with Microsoft have ended, the latter company on Thursday replied, saying it would still be interested in reaching a deal with the search and online advertising giant. Having previously offered $33 per share for the entire company, Microsoft has said it would be willing to offer in excess of the original deal, for a smaller portion of the company – its search and advertising business. Yahoo would most likely explore an outsourcing agreement with Google's AdSense program.

"As stated on May 3rd and reiterated on May 18th Microsoft was not interested in rebidding for all of Yahoo!. Our alternative transaction remains available for discussion," read the note.

Yahoo has been fighting a financial battle on two fronts: one with Microsoft, the other with billionaire investor Carl Icahn, who has been making movements to replace the Yahoo board by proxy, with one more sympathetic to Microsoft's plans.

By Electronista Staff