After spending two years spurning Microsoft’s generous advances and, more recently, being rejected by Google, Yahoo! is falling on tremendously hard times. All snide comments about the skills of Yahoo! management aside, it seems the flagging search giant is turning back to Microsoft to save itself.

At a Web2.0 conference in San Francisco, Yahoo! founder and CEO Jerry Yang expressed interest in resuming talks with Microsoft while admitting that nothing was under way. Meanwhile, minority shareholder and recent board member Carl Icahn continues to suggest Yahoo! sell its search services to Redmond.

As the value of Yahoo! shares flirts with $14, it will be difficult to curry enough favor to land the $37 that Microsoft offered back in July.