While nothing official has been released by Microsoft, The Times of London is reporting Microsoft Corp. has resumed its pursuit of Yahoo in a deal that could cost the Redmond-based company $20 billion, less than half of what it offered for the search site this summer.

Microsoft has put forward Jonathan Miller, ex-chairman and chief executive of AOL, and Ross Levinsohn, a former president of Fox Interactive Media, to lead a new management team at Yahoo under a 10-year agreement. Microsoft would have a two-year option to buy Yahoo outright for $20 billion. The report also says senior management at both companies “have agreed (to) the broad terms of a deal, but there is no guarantee that it will succeed.”

Now I am confused..Ballmer just got through saying about a week and half ago, “We are done with all acquisition discussions with Yahoo.” Again, no official response yet for Microsoft and there likely won’t be any until Monday.

News Source: The Microsoft Blog