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Well, it's official. The Microsoft/Yahoo! deal that wouldn't die isn't dead yet. While Microsoft formally withdrew its buyout offer for Yahoo! a few weeks ago, last night the company issued a statement saying that it still had designs on Yahoo! Whether that means the buyout of just a portion of Yahoo!'s business or some sort of strategic partnership remains unclear.What is clear is that Yahoo! is listening. The company has issued a statement in response to Microsoft's statement. (It's the 21st century of "have your people talk to my people"). In a nutshell, here's what Yahoo! has to say: Please don't buy our whole company, but we're not opposed to some other sort of a deal, especially one that would get our angry stockholders off our backs.Translation: We've got to do something to get our stock prices back up, and if you can't offer us something worthwhile, we might have to go ahead and partner with Google instead.
Source : http://www.downloadsquad.com/2008/05/19/yahoo-and-microsoft-start-a-new-dance/