There is a post over at Techcrunch about a Microsoft/Yahoo deal.
So the deal is really that Microsoft would put up $5 billion to help a new management team buy preferred shares and warrants that would give it a 30% stake in Yahoo. In return, Microsoft would get a 10-year operating agreement to run Yahoo’s search business.
The numbers do not really make sense (as tc points out). According to this Microsoft is now ready to spend more for Yahoo’s search but will not have any control.
One thing I feel pretty sure about is that a MS/Y! deal is going to happen. I just don’t think the original source of this story had the right numbers.