The meeting between Yahoo and Microsoft took place on Monday, according to sources familiar with the talks. It was the first meeting since Yahoo rejected Microsoft’s $45 billion offer last month.
While Yahoo executives mostly listened, they allowed Microsoft to present its vision of what they plan for both companies should they merge.
Yahoo did have talks with News Corp and Time Warner, no other offers to buy the search engine company have been made public, leaving both companies in a standoff. Earlier this week, News Corp chief executive Rupert Murdoch has said he would not fight Microsoft for a Yahoo acquisition.
The search engine company recently extended the deadline for its board of directors nominations in an unexpected move seen by some analysts and investors as delaying a potential hostile takeover by Microsoft.
Microsoft’s initial bid was $45 billion for the company, but the value of its offer has since declined to less than $42 billion as its shares have fallen 12 percent.
AOL announced Thursday it was buying the social networking site Bebo, for $700 million in cash, in an effort that some say suggests that it has no further interest in Yahoo.