The Microsoft-Yahoo Deal Just Refuses To Die

In a Tuesday report in the Wall Street Journal, unnamed sources close to the discussions said the deal would involve Microsoft buying Yahoo's search business, with another media partner teaming up with the Yahoo leftovers, in a deal that would lead to the breakup of Yahoo.

Microsoft made an unsolicited $44.6 billion bid for Yahoo in January, but after much hemming and hawing from Yahoo about the size of the bid, ended up pulling the deal in May. Since then, there has been a steady stream of renegotiation rumors as well as pressure from corporate raider Carl Icahn to oust Yahoo CEO Jerry Yang for letting his loathing of Microsoft get in the way of the deal.

Last month, Yahoo hopped into bed with Google last month on a multi-million dollar search advertising deal, in a clear bid to stoke the fires of Microsoft's jealousy. However, that deal apparently hasn't done much to convince Yahoo's top talent to remain with the company, as the trickle of executive departures has turned to a flood in recent weeks.