Yahoo Inc. (NDAQ: YHOO) shareholders are in a world of hurt these days- how would a $33/share offer look now? This question has some people asking whether or not it is time for Microsoft Corporation (NDAQ: MSFT) to come back to the table with its $24/share offer. Microsoft even has some help on the board in the form of an activist shareholder - Carl Icahn - who now has a direct hand in any decision to sell the giant to Microsoft.

Carl Icahn has already talked of selling Yahoo's search business to Microsoft as part of a complex alliance. Under the plan, Yahoo would sell its search business for $1 billion in cash and Microsoft would also become the exclusive search provider on all Yahoo sites for a term of five years. In return, Microsoft would guarantee Yahoo $2.3 billion per year as compensation for search queries generated from Yahoo properties so long as Yahoo meets certain traffic requirements.

The move comes after Microsoft had already broke off merger talks with Yahoo after its board rejected a $33 per share buyout bid, which is about double the current share price. Initially, Yahoo also rejected the idea of Icahn's plan, but quickly had a change of heart when the activist investor launched a proxy contest. To satisfy the dissident investor, he was given a seat on the board and an ability to push the agenda that so many area awaiting now.