Microsoft Corporation says it is talking to Yahoo Inc about a transaction that won't involve a full buyout, AP reported.
Redmond, Washington-based Microsoft has walked away from a $47.5 billion offer to buy the Web pioneer. Since then, billionaire investor Carl Icahn has launched an effort to oust Yahoo's board.
In a statement Sunday, Microsoft says it is considering a different kind of deal with Yahoo.
"Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative," the statement said.