by , 11:40 AM EST, February 8th, 2008

Internet search company Yahoo may be ready to reply to Microsoft's unsolicited buy out offer as early as Friday. Apparently a special Yahoo board of directors meeting is scheduled for some time today to make a final decision, according to TechCrunch.

Microsoft presented Yahoo with a take over bid on February 1 for US$44.6 billion after the search company reported a 23 percent drop in earnings and that it was laying off about 1,000 employees. Microsoft spun its offer as a way for Web surfers to have more than just Google as option for online services.

Both Microsoft and Yahoo have been trailing Google's popularity for some time, and joining forces could let the two create an online presence that takes a bigger piece of the advertising revenue market.

Following Microsoft's offer, Yahoo said in a press statement that its "Board is going to evaluate all of Yahoo's strategic alternatives and pursue the option that it believes can best maximize value for our shareholders."