Microsoft to Join Up with Yahoo?

With Google's dominance in the search market continuing to grow, Microsoft has turned to an unlikely ally with an olive branch in hand: Yahoo. According to the Wall Street Journal, the Redmond company has held discussion about acquiring a stake in Yahoo, although the talks are not currently active.

Microsoft is currently reorganizing its search business, bringing in former Ask.com CEO Steve Berkowitz to head MSN. However, sources say the two companies have discussed possible options over the past year, including a minority investment in Yahoo and even a full buyout. Microsoft had previously considered buying a stake in Time Warner's AOL division before Google offered $1 billion.