Microsoft issued a statement today (May 18, 2008) saying that they want to make a transaction with Yahoo! and not necessarily an acquisition of all the shares. It is easy to guess that they want to get the search business. It could also be a smart move to stop others from getting involved. This saga will continue and read the statement from Microsoft. For an updated story about the latest development follow link to Bloomberg .
See video from Reuters titled - Microsoft after Yahoo search.