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Source: Yahoo-Microsoft deal unlikely this week

Although Yahoo and Microsoft have continued to talk, any search tie-up is unlikely to come this week, according to a source.

Ina Fried Former Staff writer, CNET News
During her years at CNET News, Ina Fried changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley.
Ina Fried

Microsoft and Yahoo may well reach some sort of search partnership, but any deal is unlikely to come this week, a source told CNET News.

The on-again, off-again talks reportedly heated up last week, with Microsoft executives said to have traveled to Yahoo. The All Things Digital Web site reported that things were "down to the short strokes."

Among those said to have made the Silicon Valley trip were three of Microsoft's top online executives: Yusuf Mehdi, Satya Nadella, and Qi Lu.

However, a deal has yet to materialize, and a source said on Thursday that none is likely this week.

The Wall Street Journal reported on Thursday that Yahoo's board plans to meet on Thursday for an "update" on the talks.

Yahoo CEO Carol Bartz said in May that she was open to a search deal if she believed in the partner's technology and they provided "boatloads" of money.

Microsoft CEO Steve Ballmer has indicated for more than a year now that he would like to strike some sort of search deal, although he no longer wants to acquire all of Yahoo as his company offered to do in February 2008.

Yahoo declined to comment on board meetings or matters. A Microsoft representative declined to comment