Aside from Microsoft, there aren't many likely buyers for Yahoo, which rejected the software giant's $44.6 billion bid. But a shortage of suitors hasn't stopped Yahoo from looking at all options. In the latest chapter of the saga, Yahoo is said to be in intense discussion with Time Warner about a deal that would somehow fold AOL into the slumping internet titan.

According to a Wall Street Journal report (subscription required), talks between the two companies became serious when Yahoo asked for a proposal that it could take to its board. Sources close to the talks say the proposal includes uniting Yahoo and AOL, including its Advertising.com business. But any deal isn't expected to include outsourcing Yahoo search to Google, which handles some of AOL's search business.

In the meantime, Microsoft CEO Steve Ballmer has made it clear that he has no plans to budge on his offer for Yahoo. And despite rumors that indicate Yahoo is talking to a slew of potential buyers, including News Corp., many believe Microsoft will ultimately get what it wants.