(Associated Press via NewsEdge) Microsoft met with Yahoo to discuss the software maker's unsolicited takeover bid earlier this week, a breakthrough that could be the first step toward a friendly deal between the two rivals.
The meeting occurred last week near Yahoo's Sunnyvale headquarters, according to a person familiar with the situation.
The person spoke Friday on the condition of not being identified because the preliminary talks haven't been formally disclosed.
No investments bankers attended the meeting, nor was there any discussion about whether Microsoft is willing to raise its offer, initially valued at $44.6 billion, or $31 per share. Yahoo's board already has rejected that bid, arguing the company's internet franchise is worth more.
Although it's unclear whether Microsoft CEO Steve Ballmer and his Yahoo counterpart, Jerry Yang, attended the meeting, senior management from both companies were on hand.
The gathering, first reported by The Wall Street Journal, gave Microsoft its first chance to sell Yahoo on the rationale for the proposed marriage since the software maker unveiled its plans six weeks ago.
Since then, Yang has been exploring different ways to ward off Microsoft. The alternatives have included possible alliances with internet search and advertising leader Google, News Corp.'s MySpace.com and Time Warner's AOL.
Microsoft has held firm with its bid and warned it's prepared to pursue a hostile takeover if Yahoo continues to resist.
Most industry analysts believe neither side wants to engage in an acrimonious battle and expect Microsoft to resolve the impasse with a slightly higher bid.
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