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19 May 2008 By Rob Cox Follow @rob1cox

Doggedly pursuing Yahoo isn’t simply to bulk up in search it s about the future of its software and office franchise. Microsoft can t let Google continue its unfettered deployment of cash flows from search into cloud computing without a serious fight.

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On May 18, Microsoft announced that it was considering an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo!.

Later that day, Yahoo released its own statement, saying that its board was exploring alternatives to maximise value and remain open to pursuing any transaction that which is the best interest of our stockholders.
On the morning of May 19, CNBC reported that the two companies are discussing a joint venture.

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