Microsoft had given Yahoo until last Saturday to come to the negotiating table and reach a friendly deal. But now that the deadline has come and gone, Microsoft may be leaning towards a hostile takeover with an announcement likely to come today, according to a Wall Street Journal report.
Citing unnamed sources familiar with the matter, the newspaper said price will be a key factor if Microsoft does take a hostile approach. Major Yahoo shareholders have signaled they want a price in the range of $35 to $37 a share, hence the dilemma, Ballmer doesnt want to overpay. The CEO said he has a figure in mind as to what Yahoo is worth and he doesn't plan to pay a dime above that amount.
The question remains just what price Microsoft is willing to pay some say they are willing to raise the bid to as much as $33 a share and what means the company will have to get that offer to be considered. That said, Ballmer also reiterated that the company could forge ahead without a merger, saying that Yahoo was just one of many moving parts in their strategy to compete with Google in search and online advertising.