In January when the offer was made it valued around $31 per share and on this Friday Yahoo stock ended at $28.67 per share.According to Microsoft CEO Steve Ballmer ‘Yahoo’s demand was illogical and beyond their understanding.

Ballmer narrated in a letter to Yahoo Chief Executive Jerry Yang Yahoo asked $5 billion add in value or minimum an added $4 per share and it led the deal at $37 per share.
Ballmer further described that it wouldn’t be a sensible act if that offer is openly taken to shareholders.

Ballmer also added that a partnership between Yahoo and “the dominant search contributor” as he called to Google would develop a merger that is desirable for a lot of reasons.

On the other hand Yahoo’s officials showed their pleasure with the end of that offer made by Microsoft.Yang in a statement named that Microsoft’s offer a commotion and told that now Yahoo will put all its energies “on performing the most significant change in our record so that we can make the most of our potential.”

While is seeking to develop a new web ad planning that will help it to compete in new internet ad scenario and to enhance its market share in this lucrative Web ad  market. However,what will be that strategy without Yahoo and will it prove successful or not, only coming time can tell .But it is also a fact that Microsoft the software giant has been ruling for a long, long time but today Microsoft is facing the reality that its no more a ruler and Google is the new king of net search options.

According to Mr. Ballmer his team is talented enough to develop some novel sort of services that will prove very helpful to enhance our net market share and there is no doubt about it that we have the ability to achieve that set goals.

Many experts were of the view that the deal would be finalized between the two as they both couldn’t cope with Google separately and only their merger could pave a better way to challenge the authority of Google and took some share from present Google’s lion share.
On Jan 31, 2008, a public offer was made by Microsoft to Yahoo when the later showed weak quarterly sale and a dejected gesture for 2008.One must remember that Yahoo’s recent quarter sales were also very disappointed.

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Today is the last day of the time limit that Microsoft announced for Yahoo three weeks back to accept its takeover bid or get ready for even more unfriendly bid or a choice to Microsoft to discard the offer completely.On the other hand, Yahoo has rejected Microsoft’s offer many times and has been asking for a more suitable value.

In the current internet scenario Yahoo and Microsoft are not looking competent enough to stay before Google which is taking a lion’s share in online ads and playing the role of a leading player in attaining online ads.Microsoft and Yahoo both are trying their level best to grip the ad market but most of the experts are of the view that it is quite difficult for Yahoo and Microsoft to compete Google separately and only their merger can create a possibility to challenge Google’s authority.

The battle between Microsoft and Yahoo was started in January this year when Microsoft proposed Yahoo a cash and stock offer that valued $31/share or $ 45billion.Because of the decline in Microsoft shares the bid was dropped to $29.64.

Executives of both companies have met to talk about the offer but couldn’t decide the issue. According to Jerry Yang, Yahoo’s CEO, he is not an opponent of Microsoft’s bid but the value they are offering is not suitable.Yahoo has also discussed many joint ventures with News Corp, Time Warner and even with Google and it just wants to compel Microsoft to increase the offer.

The deadline that was announced by Microsoft’s CEO Steve Ballmer will expire today (April 26) and if Yahoo doesn’t recognize this offer today, anything can happen under the following three possibilities.

• Microsoft can recall the bid but if Microsoft recalls the bid, Microsoft will have to spend continually by attaining other online ad companies.
• Microsoft increases the temperature and starts a substitute encounter.The company has by now appointed a substitute firm and apparently designated 10 candidates and three substitutes to its own optional board.
• Microsoft expands the alternative time limit whilst Yahoo attempts to induce its stockholders that a merger with Time Warner or Google is more pleasing.

However it is not clear yet what would be the next step of Microsoft in if it discarded Yahoo. Ballmer considers Yahoo a weapon that he can use against Google’s online ads influence

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