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Microsoft, Yahoo in Talks for Partial Buyout

Transaction would involved partial purchase of Internet giant

By Caroline Zimmerman,  Newser User

Posted May 18, 2008 4:05 PM CDT

(Newser) – Microsoft is back at Yahoo's bargaining table, this time seeking a partial acquisition of the Internet portal, the Wall Street Journal reports. Buyout talks fizzled earlier this month, but billionaire Carl Icahn's push for a proxy war has left Yahoo honchos feeling shareholder pressure to cut a deal, though today they warned one may not happen.

Microsoft was light on details, but said in a statement it is "considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo."

Microsoft Chairman Bill Gates speaks during a press conference in Tokyo, Wednesday, May 7, 2008.
Microsoft Chairman Bill Gates speaks during a press conference in Tokyo, Wednesday, May 7, 2008.   (Associated Press)
Microsoft Corp. Chief Executive Officer Steve Ballmer reacts during a technology conference i this file photo.
Microsoft Corp. Chief Executive Officer Steve Ballmer reacts during a technology conference i this file photo.   (Associated Press)
This April 30, 2008 file photo shows an  exterior view of Yahoo headquarters in Sunnyvale, Calif.
This April 30, 2008 file photo shows an exterior view of Yahoo headquarters in Sunnyvale, Calif.   (Associated Press)
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