The meeting was said to be the first since Microsoft made its unsolicited offer for Yahoo, worth nearly US$42 billion (S$58 billion), on Jan 31. Yahoo rejected the offer as inadequate last month.

The Journal said on Friday the meeting wasn't a negotiation and that no bankers were present.

The session was intended to allow Microsoft to present its vision of a combined company, and Yahoo executives mostly listened, the Journal quoted one of the sources as saying.

Microsoft and Yahoo spokesmen declined to comment. -- REUTERS