Reuters is reporting that Microsoft may be reconsidering its bid for Yahoo in light of changed market conditions and sings of potential weakness in Yahoo’s “core business.” The article cites as sources the familiar unnamed “people familiar with the matter.” There are few details and nobody from either company comments.

While Yahoo has been publicly waiting for an improved bid from Microsoft, the latter has declined to boost its offer. The Reuters article argues the economy supports Microsoft’s position: “The sources said the overall decline in the market has inflated the premium Microsoft is offering for Yahoo.”