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Updated July 15 at 7:05 a.m. PT, with comment from additional sources

A collection of state attorneys general are reviewing the Yahoo-Google search-advertising partnership for possible antitrust violations, several states confirmed.

While these states are in communication with one another and engaged in a collective review of the proposed deal, none have emerged as the lead state or states on the matter, said Sandi Copes, a spokeswoman for the attorney general for the state of Florida.

Attorneys general from Florida, Arkansas, and Connecticut are all taking a look at the proposed deal, but the review process is in … Read more

Microsoft jumped into the brawl between Yahoo and investor activist Carl Icahn on Monday, issuing a "set-the-record-straight" statement on its rejected sweetened offer for Yahoo's search business.

For starters, the software giant's search-only proposal "did not include changes to Yahoo's governance."

In other words, it was Icahn, the other half of Microsoft's joint proposal, who was asking for all Yahoo board members and top management to resign immediately. But even Icahn, in his letter to shareholders Monday, noted he was willing to discuss keeping some of the Yahoo directors around, and even … Read more

With the fight between Yahoo and investor activist Carl Icahn expected to accelerate in the coming weeks leading up to the company's August 1 shareholder meeting, Yahoo CEO and founder Jerry Yang sent an e-mail to employees warning them of the pending mess and offered a Q&A:

yahoos,

on friday evening, our board received a search and restructuring proposal from microsoft and carl icahn. in essence, this proposal would hand over to microsoft yahoo's search business and the rest of the business to carl icahn. our … Read more

Yahoo and investor activist Carl Icahn threw proverbial punches at each other Monday, disputing the validity of the value assessments each put on Microsoft's failed sweetened bid to acquire just the search assets of Yahoo.

The dog fight between Yahoo and Icahn is just beginning, following Icahn's filing of his final proxy Monday, indicating he is seeking to oust all of Yahoo's nine directors at its August 1 shareholders meeting.

Icahn's definitive proxy was filed after the search-only buyout talks broke down again over the weekend. Icahn, as he noted in an open letter to Yahoo shareholders, … Read more

Every kid knows the fairy tale of Hansel and Gretel, but I bet you've never heard the story of Jerry and Sue, right? Well, read on.

Not so long ago, in merry old Silicon Valley, lived a family named Yahoo. When hard times and famine hit, the father - an old advertising executive named Bostock - led two of his children - Jerry and Sue - into the forest.

Why did Bostock do that to his kids? Some say he did it so he'd have fewer mouths to feed, but nobody knows his motives for sure.

Lost in the forest, Jerry and Sue finally came upon a huge house made of gingerbread. The house was called Microsoft, and inside lived a witch named Ballmer. Some say the witch was evil, but he was more likely just desperate to reinvigorate his ancient, slumbering home with some youth.… Read more

For those wondering what activist investor Carl Icahn has to say about his announcement on Monday in running a slate of nine candidates to replace Yahoo's entire board or directors, here's his letter to Yahoo shareholders:

Dear fellow Yahoo shareholders:

We are significant shareholders of Yahoo, with an investment of approximately 4.98 percent of the company's outstanding common shares. We believe that NOW IS THE TIME TO ENTER INTO A SIGNIFICANT TRANSACTION WITH MICROSOFT.

To that end, we have nominated nine directors to replace Yahoo's current board. We urge you to read the enclosed proxy … Read more

Investor activist Carl Icahn is seeking control of the Yahoo board and will run a slate of nine dissident directors, according to his definitive proxy, filed Monday with the Securities and Exchange Commission.

Over the weekend, a final attempt to strike a deal failed, when Yahoo rejected a joint-proposal by Icahn and Microsoft. That deal called for Microsoft to acquire Yahoo's search business, while turning over control of Yahoo's board to Icahn's slate of dissident directors.

Icahn's announcement Monday finally answers the question that has left investors wondering whether he would try to oust Yahoo's … Read more

How much better is better?

While Microsoft and Carl Icahn's joint-proposal was rejected by Yahoo on Saturday, some components of the transaction remained the same and others were given growth hormones, according to sources familiar with the companies.

Under the sweetened offer to buy just Yahoo's search business, one thing that remained unchanged was the $1 billion payment for Yahoo's search business and the $8 billion preferred equity investment the software giant was willing to pony up as part of its initial search proposal last month, said one source close to the company.

"That remained the … Read more

Late Saturday, Yahoo issued a statement regarding a joint-proposal Microsoft and investor activist Carl Icahn released. Here is a copy of the statement:

Yahoo! Inc., a leading global Internet company, confirmed today that it has rejected a joint proposal from Microsoft Corporation and Carl Icahn for a complex restructuring of Yahoo! that would include the acquisition of Yahoo!'s search business by Microsoft.

The proposal was made on Friday evening and Yahoo! was given less than 24 hours to accept the proposal, the fundamental terms of which Microsoft and Mr. Icahn made clear they were unwilling to negotiate. After reviewing … Read more