The Microsoft and Yahoo drama

Rumors are flying around that Microsoft is evaluating its bid for Yahoo because the Internet company may have lost value since it made its offer.Microsoft has been repeatedly trying to engage Yahoo’s board in discussions and it has been unsuccessful so far and to push it further Microsoft’s CEO has written a letter to the Yahoo board.

Now Yahoo has leaked to Reuters that they will be sending out a strong response letter to Microsoft.

I just feel there is a deal happening here because people’s predictions of Yahoo’s earnings are bad.

Microsoft’s letter to Yahoo.

Update: Yahoo on Monday responded to Microsoft’s letter. The gist: Increase your offer or get lost. You can find the letter here.

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