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Microsoft seeks allies for new Yahoo move: report

Microsoft CEO Steve Ballmer speaks near Tel Aviv, May 21, 2008. REUTERS/Gil Cohen Magen

Microsoft CEO Steve Ballmer speaks near Tel Aviv, May 21, 2008.

Credit: Reuters/Gil Cohen Magen

Wed Jul 2, 2008 7:22am EDT

(Reuters) - Microsoft Corp is preparing a new bid for Yahoo Inc's search business and has approached other media companies about joining it in a deal that would effectively lead to Yahoo's breakup, the Wall Street Journal said.

Microsoft has already held talks with Time Warner Inc and News Corp, among others, the newspaper quoted people familiar with the discussions as saying.

The talks are preliminary and unlikely to result in a deal with Yahoo, the paper said.

Microsoft was not immediately available for comment.

(Reporting by Ajay Kamalakaran in Bangalore; Editing by Paul Bolding)

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