News 

The two companies have been at loggerheads since Yahoo officially rejected Microsoft's $42 billion offer at the end of January, saying it undervalued the company.

Since then Microsoft has repeatedly stated its belief that the offer is fair, and would not be increased.

The report in the Wall Street Journal

ADVERTISEMENT

claims Yahoo executives met with Microsoft to hear out its proposals for a merged company, including how the integration would work and the benefits such a union would bring.

The Journal also notes that despite the meeting, it was not being treated as a negotiation and that no bankers were present. It also notes that no further meetings have been discussed, and offers no confirmation as to whether Steve Ballmer or Jerry Yang were even in attendance.

While Microsoft may view the meeting has a breakthrough after months of stalled communications, Yahoo is also thought to be holding similar talks with a number of other media companies, though News Corp recently ruled itself out of the running.

Microsoft and Yahoo declined to comment.