Update

Yahoo Sells Search to Microsoft?

After months of attempting to buy Yahoo outright, Microsoft has trimmed its ambitions and is in secret talks to acquire Yahoo’s online search business for $20 billion, according to the London Times. Microsoft would impose new management on Yahoo. Jerry Yang, the group’s co-founder, is about to step down as chief executive as soon as the board finds a successor. He opposed the Microsoft takeover and his proposed advertising alliance with Google foundered on competition fears. The Times reports that Jonathan Miller, ex-chairman and chief executive of AOL, and Ross Levinsohn, a former president of Fox Interactive Media, have already agreed to lead the new management. But there is no intention of Microsoft reviving its $47.5 billion takeover bid of Yahoo which failed last summer. Levinsohn derided the Times report as "total fiction."