Microsoft mulls media options, no new talks: source (Reuters)

Wednesday July 2, 6:29 pm ET By Eric Auchard and Kenneth Li SAN FRANCISCO/NEW YORK (Reuters) - Microsoft Corp (NasdaqGS: ), parent of MySpace, the source said. Shares of Yahoo jumped as much as 9 percent earlier in the day, after the Wall Street Journal reported that Microsoft, positioning for a new run for Yahoo's search business, had in recent days approached media companies to join together on a deal that would effectively lead to Yahoo's breakup. However, the Reuters source and a CNBC report, citing unnamed sources, later said there were no new talks or negotiations. The Journal also reported Microsoft had met with activist investor Carl Icahn in recent days to encourage him to press his proxy battle for control of Yahoo's board, the first sign Microsoft welcomed his month-old campaign. This development also was... [read full story]                    

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