Microsoft has signaled that it is willing to sweeten its previous offer for a partial buyout of Yahoo's search business, according to one major investor who has been in contact with both parties.
Neither Microsoft nor Yahoo had immediate comment.
After the termination of discussions with Microsoft less than two weeks ago, Yahoo's board said in a statement that a sale leaving the company without an independent search business "would not be in the best interests of Yahoo stockholders."
But the source noted that several of Yahoo's nine board members, including its chairman, Roy Bostock, have since indicated a willingness to hold further discussions with Microsoft on a possible deal to sell the search operations.
Yahoo and Microsoft: Is it on again?
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Yahoo and Microsoft: Is it on again?
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