Xobni, led by ex-Yahoo Jeff Bonforte, has declined a buyout offer from Microsoft, finding the software giant's plans for the startup too unformed. This from a team whose product is still in private beta. [TechCrunch]

Former Yahoo executive Jeff Bonforte, now CEO of Xobni, has come up with possibly the most cynical yet useful product ever launched by a startup. Xobni, whose software tracks and analyzes email usage in Outlook, is rumored to be in acquisition talks with Microsoft. Microsoft is, to its dismay, not in acquisition talks with Yahoo. But Xobni's latest product, TechCrunch's Erick Schonfeld reports, bridges Microsoft Outlook, desktop email software widely used in corporations, with Yahoo's Web-based email. "That's the kind of demo that gets deals done," Schonfeld observes. Indeed, it may make Microsoft wonder whether they need to buy Yahoo at all.