Claim: MS has no plans to raise Yahoo bid

Microsoft has no intention to raise its bid for Yahoo past the original offer, say sources speaking with the Wall Street Journal. The Windows developer reportedly knows that it can afford to wait for Yahoo and that there is no incentive to spend more than the original $31 per share, which at the time of the original bid amounted to $44.6 billion. Without any imminent rival offers for Yahoo, Microsoft believes Yahoo will have little choice but to accept original terms.

Yahoo is in continued talks with AOL to merge the former Internet provider and now general web firm into the search engine giant, but those close to the situation allege that the Microsoft takeover is more likely because of complexities associated with any AOL/Yahoo deal. Talks with MySpace and Fox owner News Corp. have also surfaced but are not mentioned as likely to result in

Microsoft is also said to be counting on Yahoo's lack of success in persuading investors that its long-term roadmap would improve the company's fortunes, making the resistance of Yahoo's executive board ineffective. However, the sources at the heart of the new claim say that Microsoft has no short-term plans to scrap Yahoo's board if it can land the takeover deal.

Redmond-based Microsoft has previously said that it was determined to acquire Yahoo to undermine Google and its control of both search and web advertising, which it claims is a monopoly.

Filed under: industry
Other story tags: Microsoft, Google, Yahoo, AOL, News Corp.