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Report: Yahoo and Microsoft in 'Informal Talks' About Merger

"MicroHoo" could just happen peacefully after all.

CNET is reporting this morning that Microsoft and Yahoo are now talking, at least informally, about the merger. CNET reporter Dawn Kawamoto cites an unnamed source for the information. "Yahoo has shown some willingness to have a conversation and talk," the source said.

According to the report, by keeping the talks at an "informal" level, the conversations do not have to be reported publicly; however, that also means that they most likely haven't gotten very far.

The source also said that while Microsoft is frustrated about the pace of the process, it's in it for the long haul. "Sure, there has been some frustration in Redmond over the pace, but this is a marathon and not a sprint," the source said.

Both Microsoft and Yahoo declined to comment to CNET about the report.

The report does not say when the communication between the two companies started. Earlier this week, Yahoo lost one of the alternative suitors it was seeking when News Corp. Chairman Rupert Murdoch stated at a conference that he would not battle with Microsoft: "We're not going to get into a fight with Microsoft, which has a lot more money than us."

Just last week, Yahoo temporarily side-stepped Microsoft's attempt to nominate new Yahoo board members who would be more open to Microsoft's bid of $44.6 billion by pushing back the nominating deadline and suspending its annual shareholders meeting indefinitely.

About the Author

Becky Nagel is the executive editor of the 1105 Redmond Media Group's Web sites, including Redmondmag.com, RCPmag.com, RedDevNews.com and VisualStudioMagazine.com, among others.

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