The chief executives of Microsoft Corp and Yahoo Inc. have reportedly met last week to explore possibilities of potential collaborations between the companies’ search engine and advertising business.

Amongst the talks held, the executives discussed the possibility of Microsoft supervising Yahoo’s search advertising business, and of Yahoo clubbing and running the two companies'' display advertising business.

Talks of collaboration between Microsoft and Yahoo have been anticipated for long, particularly after the failure of deal between the two during Yahoo’s co-founder Jerry Yang’s period.