Finally, Microsoft and Yahoo in Merger Talks - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times

Finally, Microsoft and Yahoo in Merger Talks - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times: "After a months-long standoff, Microsoft and Yahoo are in active merger talks, a person involved in the discussions said.

Microsoft, which had threatened to abandon its bid, has increased its offer “by several dollars,” this person said. The merger talks represent an enormous breakthrough following weeks of behind-the-scenes discussions without any progress. Exact terms being discussed could not be learned.

The talks would explain the silence from Microsoft this week as it has refused to disclose its plans, despite threatening to bring a proxy contest if Yahoo didn’t reach a deal with it by last Saturday. Seven days have passed without any announcement from Microsoft about how it intends to proceed.

Still, a person involved in the talks cautioned that they could still be postponed or collapse entirely.

Shares of Yahoo rallied on news of the renewed talks. They were trading at about $28.54 in mid-afternoon, up more than $1.70, or nearly 6.5 percent. Microsoft shares were down more than 1.5 percent."