After Yahoo turned down Microsoft’s proposal to roll in the hay and have an offspring that could take on Google’s might in the online search market, it appeared the two would maintain a distance from each other. However, a luncheon meeting between Ballmer and Yahoo Chairman Roy Bostock earlier this year again revived hopes of a deal.
The New York Times reports that the two companies have returned to the negotiation table, though for a slightly different purpose. A source close to the discussions told the NYT that the two companies are discussing an advertising deal. The source revealed that Microsoft could assume control of Yahoo’s search ads and leave Yahoo in control of display ads under one arrangement being deliberated. Steve Ballmer is also said to have met with Yahoo CEO Carol Bartz last week. There is no official word on the matter as yet.