According to The Times, one option being explored by Yahoo! is to restart merger talks with AOL to fend off Microsoft from taking over the firm. Although Yahoo! and AOL previously failed to join forces because of differences over price, it is hoped that the urgency created by an unwelcome approach from Microsoft and an impending economic downturn will spur the two into new talks.
World's largest software maker Microsoft had made an unsolicited $44.6 billion takeover bid to Yahoo! in cash and stock earlier this month.