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... 

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... 

In a bid to broaden Flickr if not actually crush YouTube, Yahoo is adding videos to what has just been a photo-sharing site. The change, which the company plans to launch publicly later Tuesday, is a modest but significant extension of Flickr’s features. The videos, limited to 90 seconds and 150MB, will be shown as thumbnails alongside users’ photos, and will inherit all the features of... 

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... 

As it scrambles to avoid defeat in its battle with Microsoft, Yahoo is trying to put a little more time on the clock. Microsoft, whose offer for Yahoo is now worth $41.2 billion, was preparing to escalate its takeover fight by starting a proxy contest next week. But in an effort to delay that move, Yahoo said Wednesday that it was extending the deadline for nominating directors until 10 days after...