A match made
in media purgatory

Insiders reveal Microsoft increased its bid for Yahoo "by several dollars," which has — at long last — sparked active merger talks.

The news brings closure to what appeared to be a public stalemate between the two giants, which in turn followed an emotional ultimatum by Microsoft — and Yahoo's cool decline.

The original buyout offer valued Yahoo at $31 per share. Yahoo was reportedly holding out for around $37 per share. Recent rumors suggested Microsoft CEO Steve Ballmer might raise the offer to $33 per share on the quiet.

According to The New York Times, major Yahoo shareholders have been fielding calls from both companies, which sought to extract what offer price would appease cross-holding investors.

There is currently no word on how this development will affect any gestating arrangements that Yahoo has with Google.