PC giant Microsoft approached Google within the last two months to discuss a possible takeover of the world's leading search engine, according to a report in today's New York Times.
According to the report the approach "gained little traction", with Google indicating a preference for an an initial public offering. However, one executive close to the discussions said Microsoft could still be interested in pursuing Google at a later date.
It is known that Microsoft is eager to take a bigger slice of the online search market - dominated by Google. Microsoft recently split its MSN online service into two divisions, laying the groundwork to more effectively compete with Yahoo and Google.
The company is also working hard on its algorithmic search engine - expected early next year.
Google has a close relationship with AOL, a Microsoft rival.