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Microsoft, Yahoo talking again

Business IT - Technology

Those efforts have included acquiring significant talent in the search field, such as Qi Lu, who is leading Microsoft's efforts -- and used to be at Yahoo.

Sources have suggested a number of ideas for the shape any new deal could take, including one in which the companies exchange online advertising and services.

Yahoo could manage the display and premium advertising side of things, for example, selling such ads along with its own.

And Microsoft would then handle the search advertising side. That arrangement would divide the online space up nicely and match each company's strong points.

In separate interviews and statements, Ballmer has expressed his interest in an alliance on multiple occasions, while Bartz has declined to say anything in public.