Microsoft announced an unexpected 44.6-billion-dollar bid for Yahoo Friday, as a latest move by the software giant to challenge Google's dominance of the lucrative online search and advertising markets.(Xinhua/Reuters File Photo) Photo Gallery>>>

     LOS ANGELES, May 18 (Xinhua) -- Microsoft said Sunday that it has resumed talks with Yahoo! on some kind of cooperation, about two weeks after it withdrew an unsolicited offer to take over the Internet company.

    In a short statement, Microsoft said it was not proposing to make a new bid to buy Yahoo! "but reserves the right to reconsider that alternative" depending on discussions with Yahoo!, shareholders of Yahoo! or Microsoft, or other third parties.

The Yahoo headquarters in Sunnyvale, California.(Xinhua/AFP File Photo) Photo Gallery>>>

    "There of course can be no assurance that any transaction will result from these discussions," the statement said.

    The contact came at a time when Yahoo! was facing a proxy battle by its investor Carl Icahn, who has been unsatisfied with Yahoo!'s refusal of the take-over offer from Microsoft which was worth 47.5 billion U.S. dollars.

    Icahn launched a campaign Thursday to replace Yahoo!'s board with directors who are in favor of reopening talks with Microsoft, saying Yahoo! had acted irrationally in refusing the Microsoft bid.

    Reports said this time that Microsoft was proposing an arrangement focused only on Yahoo!'s lucrative search advertising business instead of a full acquisition.

    Microsoft's last effort to buy Yahoo! was seen widely as one of its attempts to challenge Google's dominance of the rapidly growing online search and advertising markets.

    The software giant was hoping to acquire Yahoo! to compete more directly with Google in the internet-related markets. Yahoo! is currently ranked second in the internet search advertising business, behind Google, with Microsoft a distant third.

    Google has been gaining ground in recent years on industry pioneer Yahoo!, which is also under pressure from the increasing popularity of social networking websites like Myspace and facebook.

Yahoo shares tumble on scrapped bid

    BEIJING, May 6 -- Yahoo Inc, the Web company that spent three months fighting a takeover by Microsoft Corp, fell 21 percent in early trading after the software maker scrapped the bid because executives failed to agree on the price.

    Citigroup Inc and ThinkPanmure LLC analysts cut their ratings on Yahoo's stock to "sell" after Microsoft withdrew its bid. Microsoft said this weekend it walked away when Yahoo demanded 37 U.S. dollars a share after the 44.6 billion dollars bid was raised by about 5 billion dollars to 33 dolalrs a share. Full story

Withdrawal puts pressure on Ballmer

    BEIJING, May 6 -- Microsoft Corp's decision to drop its pursuit of Yahoo Inc increases the pressure on Chief Executive Officer Steve Ballmer to make his money-losing Internet business succeed against Google Inc.

    Ballmer's bid for Yahoo, the most-visited website, signaled that Microsoft was making little progress against Google in Internet search advertising, said Charles Di Bona, a Sanford C. Bernstein analyst. Ballmer withdrew his bid over the weekend after Yahoo refused a sweetened offer of almost $50 billion in stock, leaving investors asking what his online strategy will be. Full story

Yahoo's CEO says no to Microsoft, shareholders irate

    BEIJING, May 5 (Xinhuanet) -- By rejecting Microsoft's 47.5 billion U.S. dollar offer, Yahoo Inc. Chief Executive Jerry Yang will get a chance to prove his plan to right the Internet giant is working -- if disgruntled shareholders don't throw him to the wolves first.

    Many analysts believe Yahoo's stock price, which had advance almost 50 percent since Microsoft's initial offer, will give up most, if not all, of that gain, leaving the Sunnyvale-based company's market value around 30 billion dollars. Full story

Yahoo: what's next after Microsoft withdraws?

    BEIJING, May 5 (Xinhuanet) -- Yahoo Inc faced growing pressure on Sunday to find an alternative strategy to Microsoft Corp's 47.5 billion U.S. dollar takeover offer after the software maker withdrew over a disagreement on price.

    Yahoo shares could fall by more than 30 percent on Monday over the breakdown of talks, but that drop could be softened if Wall Street believes Yahoo Chief Executive Jerry Yang has another strategy up his sleeve, analysts said. Full story

Wall Street retreats as Microsoft withdraws Yahoo bid

    NEW YORK, May 5 (Xinhua) -- Wall Street retreated Monday as Microsoft Corp. withdrew its bid for Yahoo Inc. and oil prices topped 120 U.S. dollars.

    Microsoft withdrew its offer of 43.7 billion dollars to buy Yahoo Inc. Saturday after the Internet provider refused the price. Full story