The speculations started off when the Microsoft executives arrived at the Silicon Valley. The deal on internet search and advertising is expected to happen within a week.
If Microsoft successfully seals the deal with Yahoo, it will take control of Yahoo's search engine division. It is not clear as to what the offer is.
Microsoft is keen on clinching this deal, as it wants to gain control over one of its rivals in the Internet arena, as it continues to battle it out with Google. When Microsoft approached it last time, Yahoo denied the deal saying that the company was worth far more than how much was offered.