Microsoft, Yahoo in talks on possible deal
— -- Microsoft's pursuit of Yahoo is far from finished.
Microsoft did not provide any details. Yahoo issued a statement late Sunday saying it was considering a "number of value-maximizing strategic alternatives" and would evaluate any Microsoft proposal.
Despite its earlier insistence that its pursuit of Yahoo was finished, Microsoft's statement Sunday also left open the possibility of a full acquisition.
"Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative, depending on future developments and discussions that may take place" with Yahoo, its shareholders or with other third parties, Microsoft said.
Yahoo and Microsoft reinitiated talks after billionaire investor Carl Icahn last week launched a plan to boot Yahoo's 10-member board of directors for "irresponsible" and "unconscionable" acts that prompted Microsoft to drop its $33-a-share bid to buy Yahoo.
Microsoft's last offer was worth $2 a share more than its initial bid, but Yahoo had demanded $37 a share.
Yahoo shares closed Friday at $27.66, down $1, or 3%, from where they were when Microsoft withdrew its offer.
According to a source close to Microsoft, the renewed talks would involve a partnership of some kind.
The source asked not to be named because Microsoft has not authorized others to speak publicly on its behalf.
The most likely scenario, industry analysts say, would be an advertising accord in place of a similar arrangement that Yahoo and Google are now discussing.
The Yahoo-Google talks have struck a sour note with some Yahoo followers because a deal with Google — dominant in the online advertising market — would face antitrust hurdles and would put Yahoo at a financial disadvantage, says Jonathan Yarmis, an analyst at AMR Research.
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