Microsoft-Yahoo, Round 2

May 19, 9:33 AMBusiness ExaminerDarrell Proctor

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As predicted, once billionaire Carl Icahn got involved, it was only a matter of time before Microsoft revived its effort to buy Yahoo.

Microsoft said in a statement the new deal - in play after MSFT withdrew an earlier $47.5 billion offer - would not involve buying Yahoo in its entirety.

The Wall Street Journal says discussions on a new deal revolve around Yahoo carrying Microsoft search ads, a move designed to keep Google from getting Yahoo to do the same.

Yahoo, in a test venture, had been running Google ads with its search results to boost revenue, a test that has ended but one both parties said they were happy with.

In any event, Microsoft is ready to do something, and soon - the company today said it would have an announcement Tuesday about a "major new initiative" in its search engine technology.

A memo from Kevin Johnson (at left), the company's president of Internet business, to workers also said MSFT would change its online branding. Johnson said the branding was "fragmented and confusing."

Meanwhile, Icahn - who owns 10 million shares of Yahoo and has options on another 49 million - has submitted his own nominees for the Yahoo board. In addition to himself, they include Dallas Mavericks owner Mark Cuban and Frank Biondi, former Viacom CEO.