In a major twist Yahoo Inc Chief Executive Jerry Yang is said to have claimed that  Microsoft seems to have lost the interest in a  merger eventually.

The talks have been going on for quite some time with Microsoft initially expressing interest and then backing off owing to cold response from Yahoo.Microsoft offered $31 a share in a half-cash, half-stock bid, to buy Yahoo, which valued it at $44.6 billion. Yahoo rejected the offer quoting the value to be much lower than its actual worth.According to the sources recently, Microsoft has proposed buying Yahoo''''s search business and taking a minority but reinitiated full merger negotiations.

Several orientations have changed since the beginning and now a complete merger was proposed. The exact course of action has still not been decided."Microsoft is no longer interested in buying the company, and we are talking about other things. We definitely have to understand what they''''re proposing...they clearly have an interest in Yahoo, and we need to understand more," Yang said.

Another modulation of a proposed deal theory is that, Yahoo would sell its Asian assets including significant minority stakes in Yahoo Japan and China''''s Alibaba Group, while Microsoft would buy a chunk of what remains of the company, the source said.