Michael Arrington reporting that Microsoft has been in acquisition discussions with email startup Xobni, we’ve confirmed through multiple sources. The company, which launched at the TechCrunch40 conference last year, currently offers an outlook plugin for Windows users that significantly improves the desktop email experience (particularly search).

Microsoft may have first approached the company months ago and floated an offer of sub $20 million, which was apparently rejected. But the company, which recently hired notable Yahoo’er Jeff Bonforte as CEO, is now back at the table with Microsoft corporate development.

Microsoft, Deal, Acquisition, Email, Xobni, Corporate News