Forbes is reporting that MS wants to get back into talks with Yahoo:
Software maker Microsoft Corp. asked search engine operator Yahoo Inc. to re-enter formal negotiations for an acquisition that could be worth $50 billion, the New York Post reported on Friday.
I can almost see Google rubbing their hands, Brer Rabbit like, thinking "please, please don't throw us into that briar patch!". If MS does end up buying Yahoo, they'll end up paralyzed for the next few years as middle management on each side goes to war. Mergers of entities that large almost never go well.
Update: I love this phrasing from Matthew Ingram: "MSFT and Yahoo: two icebergs, roped together"