Microsoft Looks for Partners to Help Split Yahoo

Following Henry Blodget’s prediction that Yahoo CEO Jerry Yang and company president Sue Decker are “toast,” Reuters is reporting that Microsoft Corp is preparing a new bid for Yahoo’s search business, and has already approached other media companies about joining it in a deal that would effectively lead to Yahoo’s breakup.

“By mid-day a CNBC report refuted the report of a new approach. Citing unnamed sources, CNBC said Microsoft has held no new talks and there are no negotiations, sending Yahoo’s shares up 7 percent.”

The Wall Street Journal said that the talks are in fact ongoing, but are preliminary and are unlikely to lead to a company split just yet. Of course, all of the companies involved have declined to comment.