Shares of Yahoo jumped on a report that Microsoft
Technology blog TechCrunch reported Tuesday that talks were back on, citing multiple unnamed sources at both companies.
Shares of Yahoo were up more than 4 percent on the Nasdaq before giving back about half of those gains. Microsoft shares edged down by less than 0.5 percent.
"The information we have is thin, but what one source is saying [is] that Microsoft is talking a price lower than the $33 they were offering when the talks disintegrated in May," the report said.
But a source close to Microsoft told CNBC that there are no new negotiations between the software giant and the Internet portal. See the accompanying CNBC video for more.
"There is no deal for the whole company, and nothing has changed as of today," the source said.
Yahoo has already rejected a $47.5 billion takeover offer from Microsoft, or $33 per share. It also turned down an alternative deal to sell the software maker its search business.
The Sunnyvale, California company is fighting a proxy battle against activist shareholder Carl Icahn, who has sought to replace Yahoo Chief Executive Jerry Yang and the board.
The company's next shareholders meeting is scheduled for Aug. 1.