Microsoft Uping The Ante on Yahoo?

The New York Times is reporting that people close to the negotiations are saying that Microsoft and Yahoo! have been working for 2 days to get a deal done. Microsoft is apparently softening it's position on raising it's offer. “I know exactly what I think Yahoo is worth to me.” Steve Ballmer told Microsoft employees on Thursday adding, “I won’t go a dime above, and I will go to what I think it’s worth if that gets the deal done.” Microsoft's initial offer was $31 per share, the board of directors at Yahoo! is holding out for $37 but some Yahoo! stockholders have signaled that they would consider $35... the renewed talks seem to indicate that neither side wants a proxy war. You can read more here.

Update: Microsoft has withdrawn it's bid after upping the offer by $5 billion, only to have it turned down by Yahoo! More here.

Yahoo! Board To Tell Microsoft They Are Not Interested... At That Price

The Wall Street Journal is reporting that Yahoo!'s Board of Directors will send Microsoft a letter on Monday saying that they are rejecting the 44.6 billion dollar offer to purchase the company. The report says that Yahoo! feels the bid is low and is unlikely to consider anything under 40 dollars a share, which would mean Microsoft would have to pony up another $12 billion. The board is apparently also considering a partnership with Google that would "safe guard" the company's independence. This should really be no surprise to anyone as it is the board's job to get the best value for it's shareholders, and they're probably looking out for their own jobs as well. Can you blame them? Your move Microsoft...