Whoa

Microsoft has made a preliminary overture to Internet giant Yahoo, and the two companies are in very early discussions about a possible merger, according to people briefed on the discussions. The talks were first reported Friday in The New York Post. Microsoft and Yahoo have considered some kind of combination before, including the sale of a stake in Yahoo’s search business to Microsoft, but failed to come to terms.

The Post says that while the two have held talks on the subject in the past, there is a new urgency on Microsoft’s part, following Google’s $3.5 billion deal to buy DoubleClick, a company that Bill Gates also coveted.

NY Times DealBook: MSFT Rekindles Its Pursuit of YHOO