Microsoft Corp. said its next operating system will be made for touch-screen applications, an alternative to the computer mouse, and its top executives reaffirmed interest in joining forces with Yahoo Inc. Microsoft Chief Executive Officer Steve Ballmer on Tuesday unveiled the iPhone-like touch-screen feature at The Wall Street Journal’s “D: All Things Digital” conference, calling... 

Microsoft Corp., the world’s biggest software maker, revived the possibility of a deal with Yahoo! Inc. to challenge Google Inc. after failing to agree on a merger. Microsoft said yesterday it’s exploring an agreement with Yahoo that stops short of a full takeover. Redmond, Washington- based Microsoft didn’t elaborate on the proposal and said it “reserves the right” to... 

Yahoo faces a proxy fight for control of the company by a billionaire activist with a history of closing controversial corporate deals. Carl Icahn has announced he will file a slate of alternate directors to replace the present board when it gets together for its shareholder meeting on 3 July. Mr Icahn purchased 50 million shares in Yahoo after Microsoft walked away from talks in May to buy the net... 

There’s been a lot of buzz about Microsoft’s Live Mesh. The live mesh team shares their thoughts and experiences - “We started by asking ourselves a series of questions about our own digital lifestyle experiences, and examining the role of the web in our lives. We examined many of the ways the web is becoming more central to us – both work style and lifestyle. We’re friending, twittering,... 

Yahoo Inc. moved closer to outsourcing its search advertising to Google Inc. after an initial test of the system yielded what the two firms deemed positive results, people familiar with the matter said. A partnership could give Yahoo some needed leverage as it tries to ward off an unwelcome $42 billion bid from Microsoft Corp. Some view the potential pact as mere gamesmanship, particularly in light... 

Microsoft issued a three-week ultimatum Saturday for Yahoo to accept its 44.6-billion-dollar takeover offer or face a hostile battle for the support of the Internet giant’s shareholders. In an open letter to the Yahoo board of directors, Microsoft chief executive Steve Ballmer accused the company of avoiding serious negotiations over its February 1 offer and warned that any further delays could... 

SEATTLE - A person familiar with Microsoft’s bid for Yahoo said Friday the software company is evaluating its offer in light of the economic climate and the Internet pioneer’s deteriorating business. The person, who asked not to be named because he was not authorized to speak publicly, said Yahoo Inc.’s share of the search market and overall condition have deteriorated since Microsoft... 

LAS VEGAS - While Microsoft Corp. (MSFT) wants to expand beyond business customers, it remains to be seen if the mix of improvements to its Windows Mobile operating system will be able to get the job done. The Redmond, Wash., software giant has pushed hard to get its foot in the mobile door through its operating system, and now wants to bust it open. At the CTIA Wireless trade show on Wednesday, it... 

A day after it was released for public download, Windows Vista SP1 is drawing barbs from some computer users who say the software wrecked their systems. “I downloaded it via Windows Update, and got a bluescreen on the third part of the update,” wrote “Iggy33″ in a comment posted Wednesday onMicrosoft (NSDQ: MSFT)’s Vista team blog. Iggy33 was just one of dozens of posters... 

Microsoft has released the long-awaited first Windows Vista Service Pack, a wrap-up of incremental updates that apparently cripples certain vendors’ software. SP1 tackles reliability and performance, adds support for new hardware and wraps in earlier updates for compatibility with third party software. Microsoft claims more than 2,000 applications are now “certified for” or “work...