Microsoft announced Sunday afternoon it has issued another proposal to Yahoo that calls for a transaction with Yahoo, but that would not involve the acquisition of all of Yahoo's assets.
The announcement comes just days after billionaire investor Carl Icahn launched a proxy fight to unseat Yahoo's current board at the Internet search pioneer's upcoming July 3 annual shareholders meeting.
Icahn, a large Yahoo stakeholder, aimed to pressure the search company to restart talks with Microsoft, after the software giant withdrew its unsolicited buyout bid of $33 a share on May 3.
While Microsoft has repeatedly said it has "moved on" after withdrawing its Yahoo bid, the software giant still faced the issue of how it would bolster its Internet business to compete against its archrival Google. And Yahoo--which, sources told News.com, considered the ball to be in Microsoft's court since it was the one to walk away from the deal--faced the ire of its major shareholders after those deal talks failed.
"Microsoft is considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo," Microsoft said in a statement.
"Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo or discussions with shareholders of Yahoo or Microsoft or with other third parties," the software giant stated.
There is no guarantee, Microsoft was careful to say, that anything may come from these discussions. The company declined to comment beyond what it issued in its statement, a Microsoft spokesman said.