SAN FRANCISCO (MarketWatch) - Microsoft Corp. said Monday morning that it would be open to discussing a "major transaction" with Yahoo Inc. if the Web portal installs a new board of directors at its annual meeting next month.
In a statement, the software giant said it has held discussions with billionaire activist Carl Icahn, who is mounting a proxy battle for control of the Web portal. While not promising a deal, Microsoft said it has concluded that it cannot reach an agreement with the current Yahoo board but would be open to discussions with a new board.
"We confirm, however, that after the shareholder election Microsoft would be interested in discussing with a new board a major transaction with Yahoo, such as either a transaction to purchase the 'Search' function with large financial guarantees or, in the alternative, purchasing the whole company," the statement read.
Shares of Yahoo jumped more than 10% in early morning trading Monday. The stock has dropped by more than 25% since Microsoft pulled its $47 billion buyout offer in early May.