Microhoo! Update: Yahoo! Set to Say 'Try Again' to Microsoft

The latest news on the Microhoo! Saga, as reported by the New York Times, is that Yahoo!'s board of directors plan on declining the $44.6 billion dollar offer from Microsoft.

In a board meeting at Yahoo! on Friday 8^th February, attendees apparently covered possible responses to Microsoft's proposal and in the end it was thought that the offer for Yahoo! was below what the board believed the business to be worth.

According to the Wall Street Journal, Yahoo! is looking for bids in excess of $40 per share, or something in the range of $56+ billion. At $44.6 billion or $31 per share, the board apparently feels as though Microsoft is trying to "steal" the company and take advantage of their recent weaknesses.

On the other side of the coin, the Wall Street Journal speculates that Microsoft is unwilling to attempt a hostile acquisition. Such a strategy could potentially create regulatory implications as well as forcing them to remove the entire existing board of directors.

It is believed that the Yahoo! board will be sending Microsoft a letter today (Monday 11^th February) detailing their position.

So, the question everybody is asking, even though there was no official word from Yahoo! yet, is what is going to be Microsoft's next move? We will keep you posted on any further developments.

Posted by Courtney Mills at 7:41 AM GMT