Microsoft Corp. has announced that it had reached out to Yahoo Inc. with a possibility of a fresh deal that does not involve an acquisition of the Internet company.
"Microsoft is considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo," Microsoft said in a brief statement.
The announcement comes on the heels of Yahoo shareholder and billionaire investor Carl Icahn launching a proxy fight to wrest control of the Yahoo board at the upcoming July 3 annual shareholders meeting.
Microsoft withdrew its unsolicited $33-a-share buyout bid on May 3, after the two sides failed to agree on a price.
Icahn has called the Yahoo board's decision to reject Microsoft offer as irrational and wants to force Yahoo to return to the bargaining table with Microsoft.
Microsoft did not elaborate on the new proposal. Microsoft said that it was not proposing to make a new bid to acquire all of Yahoo at this time, but was continuing to explore and pursue its options to improve and expand its online services and advertising businesses.
"Microsoft reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties."
Microsoft noted that there can be no assurance that any transaction will result from these discussions.
The New York Times cited "people involved in the confidential discussions" as saying that Microsoft has in mind a partnership or joint venture for search-related advertising.
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