All's not over on the Microsoft-Yahoo! front. First, the Wall Street Journal reported (quoting an unnamed person familiar with the deal) that both companies had met earlier this week on Monday to discuss Microsoft's impending takeover bid for Yahoo!. Now, Reuters has reported the same, quoting two anonymous sources familiar with the matter.
The meeting is significant because it's the first to happen since Yahoo! famously spurned Microsoft's unsolicited $45 billion bid in Jan this year, calling it "inadequate".
According to one of the Reuters sources, the meeting was not a negotiation and no bankers were present. Apparently, it was intended to allow Microsoft present their vision of a 'combined company' while Yahoo! executives mostly listened.
As per the Wall Street Journal, financial terms of the deal weren't discussed during the meeting, neither was it clear which executives participated.
Spokespersons for Microsoft and Yahoo! meanwhile haven't commented on the matter yet.
Since Yahoo! rejected Microsoft's bid, neither has Microsoft fattened its offer nor have any other bids been made public leaving the two companies in an impasse. Importantly, the value of the original offer has declined from $45 billion to less than $42 billion with the value of Microsoft's shares having fallen since.
Yahoo! meanwhile has been in much-publicized discussions with News Corp and Time Warner's AOL. However, News Corp Chief Executive Rupert Murdoch has clearly said he will not fight Microsoft for a Yahoo! deal. While AOL has just made a $850 million offer to takeover social networking Web site Bebo.
According to some in the know, even Yahoo!'s meeting with Microsoft is part of its strategy to keep all options open.