Dealbook is reporting that Microsoft and Yahoo are "finally" coming to the table to participate in "active merger talks." It seems Microsoft, which had earlier threatened to abandon their bid, has just this week increased it by "several dollars," which we can only assume is business speak for "a whole lot."

According to Dealbook* the talks "represent an enormous breakthrough following weeks of behind-the-scenes discussions without any progress," even though "they could still be postponed or collapse entirely." Stay tuned.

*UPDATE We initially attributed this to Dealbreaker, hat tip to "reader00" for pointing out this was actually a Dealbook story. Our mistake.