Looks like Microsoft won't be getting Yahoo that easy.
The Web portal's board met on Sunday and concluded that Microsoft's bid, originally worth $44.6 billion, is too low and plans to reject it, according to numerous reports.
Value of the bid made Feb. 1, which is half stock and half cash, has already declined slightly as Microsoft shares have fallen.
The Yahoo board, which spent a week considering the bid and various alternatives, concluded that it undervalued its company, even though no bids for more money have been forthcoming.
Microsoft could take its bid directly to Yahoo shareholders despite the board's rejection, a potentially risky move that, should it fail, could harm relations between the two companies going forward.
More likely move, it seems, would be for Microsoft to up its bid, originally worth $31 per share, by several dollars. In several interviews since the offer was made, Microsoft CEO Steve Ballmer has emphasized how important Yahoo is to his company's future. Thus, it's unlikely he would give up so easily.
Microsoft made a bid last year, when Yahoo stock was worth significantly more, worth about $40 per share. Board may be hoping to get the bid back up to that value.
Yahoo hasn't yet commented publicly, though it is expected to do so today.
(The Associated Press contributed to this report.)
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