Yahoo/Microsoft talks back on?

Speculation has mounted that Yahoo and Microsoft are close to agreeing a commercial partnership after reports of their respective CEOs Carol Bartz and Steve Ballmer meeting to discuss possible deals.

While neither company has commented on what was discussed, reports have suggested Yahoo has enquired about running a combined display advertising business, with Microsoft taking control of search.

The main focus of Microsoft’s original $44.6bn (£22.4bn) takeover offer to Yahoo, made on 1 February last year, was widely understood to be about the company gaining a stronger search foothold.

Microsoft CEO Steve Ballmer has made comments on several occasions since Bartz took over at Yahoo at the turn of the year that he would like to resurrect a deal. However, these are the first reports that the two have spoken face to face on the subject.

Yahoo saw its shares rise 6.5% yesterday as a result of the renewed speculation.

This story first appeared on

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