New York - In the wake of their failed negotiations with one another, both Microsoft (NASD: MSFT) and Yahoo (NASD: YHOO) have been holding separate talks with other media partners on possible combinations, sources told The Wall Street Journal, Reuters and other outlets. The Journal reports that Yahoo is in talks with Time Warner (NYSE: TWX) about a possible merger with that company's AOL unit, although the talks apparently aren't as serious as they were in April, as Yahoo's stock has since seen a sharp decline in value.

Meanwhile, Microsoft is reportedly also in talks with Time Warner, as well as News Corp. (NYSE: NWS), a source close to Microsoft told Reuters.

Those talks remain in primary stages.

The Journal reported yesterday that Microsoft might be looking to take another stab at acquiring Yahoo's search business, perhaps teaming with other firms in a bid, and further that the company had met with activist shareholder Carl Icahn to encourage his efforts to wrest control of Yahoo's board of directors.

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http://online.wsj.com/article/SB121504216556524741.html

http://snipurl.com/2texl (Reuters)

http://snipurl.com/2tf0m (MarketWatch)