Sources: Microsoft And Yahoo Talks Back On

We’ve got multiple sources at both Yahoo and Microsoft telling us that official talks are back on between the two companies. But we’re hearing something different than CNET – the talks are about a full buyout again, not a sweetened search-only deal.

The information we have is thin, but what one source is saying that Microsoft is talking a price lower than the $33 they were offering when the talks disintegrated in May. Given Yahoo’s recent share price (it’s below $21 today), and the fact that just about everyone other than their board and top execs are publicly screaming for a deal, I’m not surprised.

Microsoft official comment is “no comment,” which actually contains more information than it appears to. For well over a month, Microsoft has officially been saying they’re no longer interested in Yahoo. They didn’t say that today.

Update (11:44 am PST): Additional sources say the Yahoo board offered to sell to Microsoft for the “low $30s per share, and below Microsoft’s original offer” immediately before they signed the Google search deal.

Update (11:47 am PST): From CNBC:

As mentioned at 13:29, CNBC commentator said that a source very close to Microsoft (MSFT), who is ‘in the know’ about negotiations between the two, empathically said there is no deal for the all of YHOO and nothing has changed as of today. Notes that discussions between the two about YHOO’s search business has always been on the table. Reiterates that no deal on the table for the whole co.

What we’ve heard is that the two sides are in current discussions over a complete buyout, not necessarily that there’s a deal in place or even that Microsoft has made any kind of firm offer. Another source at Microsoft reiterates to us that they’re a buyer at the right price, but isn’t saying what that price is.