Microsoft is back in pursuit of Yahoo, the Wall Street Journal reports, with the company in talks with both News Corp. and Time Warner as potential partners for a restructured deal to buy the search giant. Yahoo has been in Microsoft’s sights for nearly six months, but initial efforts to buy the entire company collapsed, and Microsoft has since been looking instead to acquire the search business and spin off the rest.
The development comes as both sides regroup after the failed deal launched with a $33 a share bid by Microsoft in January. Yahoo has seen its share price drop 27% since May, and Microsoft is down 18%. Both are trying to placate upset shareholders, with Yahoo facing a proxy fight led by Carl Icahn. The Journal also reports that in mid-May Yahoo CEO Jerry Yang offered to sell the company to Microsoft for about $33 a share—a price Yahoo had earlier rejected and Microsoft had withdrawn. Microsoft declined the offer.