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Microsoft-Yahoo: Radio silence phase is over; The two are talking

Yahoo is reportedly holding informal merger discussions with Microsoft in a move that indicates a thaw between the two parties.Citing a source familiar with the talks, News.
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Written by Larry Dignan, Contributing Editor on

Yahoo is reportedly holding informal merger discussions with Microsoft in a move that indicates a thaw between the two parties.

Citing a source familiar with the talks, News.com's Dawn Kawamoto reported that the Yahoo and Microsoft are holding informal merger talks. Here's what the end of the radio silence phase means:
  • Yahoo is coming to its senses and realizing its options (Time Warner and News Corp.) are limited. News Corp. has already said twice it wasn't interested in Yahoo and AOL's pockets are lighter after paying $850 million for Bebo.
  • Microsoft's $44.6 billion bid is pretty damn good considering the economy is struggling and Yahoo's financial performance may follow.
  • It can't hurt to hear what Microsoft has to say.

These informal talks may not amount to much, but it does seem to indicate that a proxy war is a distraction that neither Microsoft nor Yahoo really needs.

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