Jerry Yang is on the rebound. Just hours after Google pulled out of an ad sharing deal with his company, pressured by the Department of Justice, the Yahoo CEO was publically wooing Microsoft.

Speaking at the Web 2.0 Summit in San Francisco yesterday, Mr Yang said he was, and always had been "open minded" about a sale of his company's search business to Microsoft.

"People who know me know I don't have an ego about remaining independent versus not remaining independent," Mr Yang told the audience. The CEO will come back to the bargaining table if Microsoft CEO Steve Ballmer invites him.

But while Jerry's one-liners say yes, his negotiating style says no.

In May, Yahoo shareholders were up in arms when Mr Yang, after a series of personal meeting with Mr Ballmer, rejected a takeover at a healthy premium of $US33 a share (Yahoo shares were trading in the mid to high 20s at the time). Mr Yang was said to have held out for a price in the high 30s, ignoring howls from institutional investors. Mr Ballmer walked away. Today, Yahoo's shares are trading under $US15.

Hit by the online advertising slowdown, Yahoo recently announced plans to lay off 10% of its staff - prompting renewed interest from Mr Ballmer even before Yahoo's defensive alliance with Google fell apart yesterday.