"Informal talks" between Microsoft and Yahoo!
An anonymous source has told CNET that Microsoft and Yahoo! are at least talking about a merger on friendly terms. According to the report:
“Microsoft and Yahoo! are holding informal merger discussions, marking a shift from the “radio silence” that previously existed between the two companies, according to a source familiar with the talks.”
This follows the news last week that Yahoo! would be extending the deadline for nominating new members to its board of directors, which we thought might be a signal that they were at least willing to consider negotiating with Microsoft . Microsoft has made it fairly clear that they will initiate a hostile takeover of Yahoo! if they can’t reach an amicable deal. Yahoo currently sits at more than 10 percent below Microsoft’s initital offer price of $31 per share, first announced back on February 1st.