Yahoo! and Microsoft senior executives met earlier this week for the first time since Microsoft placed its February bid for the firm, reports The Wall Street Journal. The meeting was reportedly not for negotiation purposes, but for Microsoft to outline its vision of a combined company. No bankers were present and no further talks are arranged, according to insiders. However, the report states it marks a step forward for the talks, which have stalled since Yahoo! initially rejected Microsoft’s US$44.6 billion offer.
Yahoo! rejected Microsoft’s offer on Feb 11 claiming the bid “substantially undervalues” the company. Following this Yahoo! was said to be in talks over alternative deals, including independent mergers with AOL and News Corp, and an ad-outsourcing deal with Google, in an attempt to remain independent. Last week, Yahoo! extended the deadline for nominating candidates to its board prior to its annual stockholder meeting. It is believed that Microsoft will push for candidates likely to accept its offer. Seven shareholders are currently suing Yahoo! over its rejection of Microsoft’s bid.