The gossip blog Valleywag - a part of Gawker Media - is abuzz with the news of a Thursday lunch meeting between Yahoo Chairman Roy Bostock and Microsoft CEO Steve Ballmer, in New York.

It is being rumored that the meeting between the two top-notches - which came two days after Carol Bartz' appointment as the new Yahoo CEO - was probably related to a Web search pact between the companies.

Earlier too Valleywag reported of Bostock and Ballmer being together in Time Warner Center, Manhattan.

Awaiting an opportunity to thump the search market leader Google, Ballmer apparently wanted to approach Yahoo about a search partnership agreement once the new management was in place. He lapped on to the chance with Bartz being hired!

According to analysts, the appointment of Bartz could pave the way for either a search deal or a sale to Microsoft.

Earlier this week, the new CEO Bartz informed employees of a telephone tête-à-tête with Ballmer, who repeatedly maintained his interest in pursuing a search partnership with the Internet company. However, sources familiar with the matter described Bartz's call to Ballmer as a mere "courtesy call."

Rumors also have it that with Microsoft already having a proposal all set, Ballmer told Bostock that he hoped a quick move on a deal between the companies.