Microsoft's Potential Interest In Helping Finance A Yahoo Deal Fails To Assure Investors

Microsoft Corporation MSFT executives recently met with private equity firms to discuss a potential buyout of Yahoo! Inc. YHOO.

Re/code, citing "numerous sources," added that Microsoft may be willing to "lend significant financing" to their efforts. In addition, Microsoft's partnerships and acquisition strategy head Peggy Johnson is involved in the effort.

Despite the latest report, shares of Yahoo were trading nearly flat after an hour of trading on Monday. The stock briefly dipped into negative territory shortly after the opening bell.

Re/code also noted talks are merely "exploratory" and Microsoft "has made no commitments so far to any investors."

Reuters, citing "a person familiar with the situation," also noted that private equity firms interested in acquiring Yahoo approached Microsoft. The publication added that while talks are still preliminary, Microsoft is focusing on preserving its long-standing relationship with Yahoo that covers search and advertising.