Reports have emerged that Microsoft has rediscovered its interest on ailing search engine firm Yahoo, with tech news site Digital Trends confirming on Thursday that the two entities have agreed to commence preliminary procedures toward a possible deal.

On its report, Digital Trends said that Microsoft, which some years ago had attempted to purchase the internet firm, inked a nondisclosure agreement with Yahoo that allows the former to review the latter's financial books.

From there, the report said that no definite intents have been hinted by the giant company founded by Bill Gates as other parties, including AOL and a number of equity outfits, have also signalled their keen interests on Yahoo.

Yahoo has previously thwarted efforts by Microsoft to buyout the company despite expressed approval from its shareholders but analysts said that the present situation is different this time, in which Yahoo is facing series of troubles that came as it was relegated to relative insignificance following the dizzying surge of its competitor, Google.

While Google gobbled up much of the lucrative advertising market, Yahoo appears to have lost its steam that pushed its young founders to the world's billionaire circle.

Experts noted that as Google establishes itself as a dominant figure in the tech industry, amassing billions and snatching assets in the process, Yahoo continues its decline, with its woes recently compounded by leadership crisis when the company CEO, Carol Bartz, was unceremoniously fired.

Nonetheless, Microsoft maintained its interests on Yahoo, according to Digital Trends, which the giant software firm has been in consistent collaboration for boosting the sales performance of its Bing search engine.

That alone, according to the tech site, is Microsoft's prime motivation in mulling a considerable take on Yahoo, though it is still unclear if Microsoft intends to actually takeover the company or gradually raise its stake, en route maybe to an eventual buy out in the near future.

The same goes to other parties exploring their investment possibilities on Yahoo, Digital Trends said, following reports that they also signed nondisclosure agreements with the internet company.

Experts noted that Microsoft's partnership with Yahoo on Bing has delivered the results it expected and ending that is far from the company's mind, which analysts said should serve as enough motivation for the two to seriously entertain a merger.

Also, the Digital Trends report has suggested that with an eventual merger fusing Microsoft and Yahoo services, the most likely beneficiaries are internet users subscribed to both Skype and Yahoo Messenger, both of which should witness considerable boosts under the auspices of the two tech giants.

And the bonus part, analysts said, is Yahoo badly needs someone to lean to at this time, a role that no doubt Microsoft could very perform to the hilt.