Industry sources are reporting that Microsoft is back in talks with Yahoo for a possible acquisition deal.
The company has apparently signed a confidentiality agreement with Yahoo. They are collaborating with investors to fund the acquisition.
Some of the other players involved are said to be private equity firms Silver Lake and TPG Capital.
Microsoft had tried three years ago to acquire Yahoo. They were willing to pay a huge premium for the company at that time. Things have changed drastically. Yahoo is not worth as much today as it was three years ago.
Microsoft is unlikely to go for Yahoo alone. They are likely to be involved in a larger group that could complete the deal. They are likely to retain some of the parts that suit their own interest while selling the rest.