Ballmer Still Undecided on Yahoo, Could Raise Bid

by , 11:50 AM EDT, May 1st, 2008

Microsoft CEO Steve Ballmer is still undecided on what tactic to use in his company's attempt to buy out Yahoo. While a hostile proxy takeover is still on the table, Mr. Ballmer is apparently also considering bumping his bid for Yahoo up to US$33 a share, according to the Wall Street Journal.

Mr. Ballmer presented Yahoo with an ultimatum warning the Internet search company that it must reach a buyout agreement by April 26 or potentially face a hostile take over attempt. Yahoo refused to make a deal with Microsoft claiming that the Redmond-based company's offer was undervalued.

Both companies have been relatively quiet about the buyout battle since Microsoft's deadline passed.

Microsoft originally presented Yahoo with an unsolicited $44.6 billion buyout offer in February after the Internet search and advertising company released a disappointing earnings report. Yahoo has maintained since then that the offer is too low and accepting it would be a disservice to company shareholders.

Microsoft is hoping to close a deal with Yahoo -- one way or another -- so that it can better compete against Google for Internet-based ad dollars. So far, Microsoft has not been able to come close to Google and its market dominating position.

Experts expect Microsoft to make its next move some time this week, but so far Big Redmond has remained quiet.