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Microsoft is going to get shocked this Monday as several newspapers and news agencies have confirmed that Yahoo’s board will dismiss the $44.6bn (£22.9bn) offer as being inadequate.

Microsoft had offered $31 a share which was 62% above the level at which Yahoo’s shares was trading. Looked like a pretty decent deal to many at that time but Yahoo’s shares closed on Friday at $29.20. So, it’s pretty unlikely that the offer is going to be accepted. Predictions are that higher price may be offered by Microsoft. But Microsoft’s shares have fallen 12% since it made its offer, which may reflect concerns that it has already offered too much or that such a large deal would distract its management away from its core software business.

A source quoted by the Wall Street Journal said that Yahoo’s board would be unlikely to consider anything below $40 per share.

I wonder what Google is thinking right now. Must be laughing hahaha…