London - Microsoft (NASD: MSFT) is once again reportedly in talks to acquire Yahoo's (NASD: YHOO) search business for $20 billion, according to the U.K.'s Times Online. Under the reported terms, Microsoft would invest $5 billion in the new search division, to be led by former AOL CEO Jonathan Miller and former Fox Interactive Media president Ross Levinsohn.

Miller and Levinsohn, founders of Velocity Interactive Group, would then match Microsoft's $5 billion with backing from external investors.

Microsoft would retain the right to buy the unit -- which would hold an approximate 30% stake in Yahoo -- for $20 billion after two years.

However, VentureBeat reports that Ross Levinsohn said there was "no truth" to the report in Times Online, while Yahoo declined to comment.

Related Links:
http://snipurl.com/704hr (Times Online)

http://snipurl.com/705en (VentureBeat)