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May 7, 2007

Various news sources say that the Yahoo-Microsoft potential merger talks are apparently no longer active.

People familiar with the case say that in recent months, Yahoo and Microsoft discussed a potential merger of the two companies that would unite their respective strengths.

However, it appears that the merger talks are no longer active, these observers say. The two companies may still explore other ways of cooperating, but merging the two companies will probably not happen anytime soon.

Earlier Friday morning, some were asking if this Yahoo-Microsoft chatter was for real this time. Apparently not say some observers, in light of today's news.

However, this doesn't mean a deal won't get done at some point in time. A merger still makes a lot of sense in many respects.

On May 5, Brier Dudley demanded a good follow-up story from the New York Post for this wild goose chase. He got a story, but not a good one. The Post followed up on the stock trading, sticks to its guns and said the following:

Sources said the talks with Microsoft are wide-ranging and include everything from an outright acquisition to the purchase of an equity stake to a potential joint venture.

While Microsoft and Yahoo have discussed a deal in the past more than once, sources say there is a renewed urgency on the part of both companies to keep pace with rival Google.

It wouldn't surprise anybody if some analysts were reading Mary Jo Foley's post about Yahoo CEO Terry Semel speaking at a Microsoft powwow and connected some dots.

Mary Jo has a certain following among the Wall Street set...

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Source: ZD Net Blog