Microsoft comments spur Yahoo deal talk

Perhaps the Yahoo-Microsoft saga isn't over.

Microsoft has signalled it's still open to a deal with the web search firm, albeit a smaller one than the massive takeover bid attempted last year especially since Yahoo's new chief executive Carol Bartz was appointed.

In an interview with the Times newspaper, Microsoft's chief operating officer Kevin Turner said: "They have a new CEO, and she's formulating her business plans."

"We've certainly made her aware and the Yahoo board aware that if they are ever interested in an opportunity to partner with them on search, we'd like to sit down and at least have the conversation. It has to make economic sense to both parties," Turner told the newspaper.

Since Bartz was appointed in January, she's said that Yahoo won't be "pulled apart and left for the chickens".

Microsoft isn't sitting and waiting for a deal with Yahoo to push forward on the search front, however. Last week, news surfaced showing Microsoft has been testing its own new search system, dubbed

Click here to read the history of the as-of-yet-failed deal, and here to see what's next for Google, Yahoo and Microsoft.