There's a mole at that table

Yahoo's stock rose 11 percent yesterday, following reports it is back in talks with Microsoft, reports The Globe & Mail (via TechCrunch)

No one from Microsoft has confirmed this development, but the "no comment" response is a stark change from previous out-and-out denials.

Sources say Microsoft is offering Yahoo less than the $44.6 billion it first proposed — an amount Yahoo CEO Jerry Yang turned down, even after the offer was raised.

During initial talks with Microsoft, Yahoo became the central figure in a pageant for its favor. News Corp., AOL and Google were prominent suitors.

Yahoo's fortunes changed dramatically when talks fell through. Shareholders and advertisers critiqued its decision to partner with Google for sponsored search, and a number of Yahoo execs abandoned ship.

Given the change in tide, Yahoo may be more amenable to a Microsoft liaison, whatever the price.