You Know the Number. Call Us After Your Lousy First Quarter

Microsoft (MSFT) and Yahoo (YHOO) are talking again–but apparently they’re talking in circles. The two companies met this week to discuss Microsoft’s proposal to acquire Yahoo, but failed to resolve the differences that have so far hamstrung the deal. Sources familiar with the talks claim the two companies remain at an impasse, with Yahoo refusing to begin formal negotiations until Microsoft sweetens its cash-and-stock offer, and Microsoft refusing to sweeten it. Redmond likely sees no reason to raise its bid until Yahoo reports first quarter earnings later this month, figuring it may not have to raise it at all if those earning are as dissapointing as some expect them to be.