TIMELINE - Microsoft's pursuit of Yahoo

(Reuters) - Microsoft Corp said on Sunday it is in contact with Yahoo Inc about an alternative deal that would not involve a full acquisition.

Such a move could save Yahoo from fighting a proxy battle with financier Carl Icahn.

Following is a timeline of key events in Microsoft's pursuit of Yahoo, stretching back more than two years, when Yahoo's financial results began weakening and private talks started in which Microsoft sought to merge with the web pioneer.

Early 2006 - Yahoo begins to report a string of disappointing quarterly results that stretches over the next two years, reflecting competitive missteps by the company, market share gains by rival Google Inc, changes in the online advertising landscape and weakening spending in some ad segments.

Late 2006/early 2007 - Microsoft and Yahoo discuss various partnerships, including a merger.

2007

February - Yahoo, under the leadership of previous Chief Executive Terry Semel, tells Microsoft it is not the right time to discuss a takeover, as the Yahoo board sees great potential from new advertising technology and internal changes.

June 12 - A strong minority of Yahoo shareholders challenges Yahoo's direction, as CEO Semel comes under fire. Nearly a third of votes cast at the company's annual shareholder meeting oppose some of Yahoo's directors.

June 18 - Yahoo co-founder Jerry Yang takes over as chief executive as Semel steps aside. Semel remains Yahoo chairman.

2008

January 31 - Microsoft CEO Steve Ballmer makes a $44.6 billion, $31-per-share cash-and-stock takeover offer to Yahoo's board. Semel resigns as chairman and is replaced by Roy Bostock.

February 1 - Microsoft makes the offer public. Its shares fall 6.6 percent to $30.45; Yahoo shares rise 48 percent to $28.38.

February 11 - Yahoo rejects the Microsoft offer as too low.

February 13 - MySpace owner News Corp and Yahoo discuss a tie-up, according to a source.

March 18 - Yahoo gives financial forecasts for the next two years, in an effort to prove it is worth more than Microsoft bid.

March 28 - One of seven face-to-face meetings takes place between the "senior-most" executives of Microsoft and Yahoo to discuss the bid. Yahoo asks how Microsoft would handle regulatory issues, including antitrust concerns, tied to a merger.