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| Version 4 | Version 5 |
|---|---|
| Yahoo shares boosted on bid hopes | Yahoo shares boosted on bid hopes |
| (about 14 hours later) | |
| Shares in Yahoo jumped 7% amid expectation Microsoft is preparing to increase its bid for the company. | |
| Microsoft is reported to be talking to the internet firm about improving the offer it made in February, which was then worth $44.6bn (£22.4bn). | |
| The software giant wants to do a deal to be able to compete with Google, which dominates the lucrative market for internet advertising. | The software giant wants to do a deal to be able to compete with Google, which dominates the lucrative market for internet advertising. |
| Yahoo rejected the cash and share offer as inadequate. | Yahoo rejected the cash and share offer as inadequate. |
| Microsoft's bid was originally worth $31 a share, but the value of the offer has since fallen as the Microsoft share price has declined. | Microsoft's bid was originally worth $31 a share, but the value of the offer has since fallen as the Microsoft share price has declined. |
| Microsoft's shares closed on Friday virtually unchanged at $29.24. Meanwhile, Yahoo's shares were $1.85 higher at $28.67. | Microsoft's shares closed on Friday virtually unchanged at $29.24. Meanwhile, Yahoo's shares were $1.85 higher at $28.67. |
| 'Negotiating tactics' | 'Negotiating tactics' |
| Microsoft's chief executive Steve Ballmer has said the existing proposal was a "generous" one, as it offered Yahoo shareholders 62% more for their shares than they were worth the day before the bid. | Microsoft's chief executive Steve Ballmer has said the existing proposal was a "generous" one, as it offered Yahoo shareholders 62% more for their shares than they were worth the day before the bid. |
| The Yahoo board was given until the 26 April to accept the software giant's offer or face a hostile bid. | The Yahoo board was given until the 26 April to accept the software giant's offer or face a hostile bid. |
| In a letter to the internet firm's board on 5 April, Mr Ballmer threatened to put the proposal directly to Yahoo shareholders and remove the firm's directors. | In a letter to the internet firm's board on 5 April, Mr Ballmer threatened to put the proposal directly to Yahoo shareholders and remove the firm's directors. |
| After the deadline passed without a response from Yahoo, the Microsoft board met this week to discuss its next move. | After the deadline passed without a response from Yahoo, the Microsoft board met this week to discuss its next move. |
| But the meeting ended without an agreement, according to reports. | But the meeting ended without an agreement, according to reports. |
| Online advertising | Online advertising |
| There are suggestions Microsoft will up its bid to around $33 per share, but it is understood that Yahoo shareholders are hoping for $35 to $37 per share. | There are suggestions Microsoft will up its bid to around $33 per share, but it is understood that Yahoo shareholders are hoping for $35 to $37 per share. |
| Mr Ballmer has in recent weeks threatened to either lower the offer or to walk away from the deal. | Mr Ballmer has in recent weeks threatened to either lower the offer or to walk away from the deal. |
| But some analysts dismiss this as negotiating tactics. | But some analysts dismiss this as negotiating tactics. |
| Microsoft wants to increase its share of the lucrative online advertising market, currently dominated by search engine firm Google. | Microsoft wants to increase its share of the lucrative online advertising market, currently dominated by search engine firm Google. |
| It was worth $40bn in 2007 and is predicted to double to $80bn by 2010. | It was worth $40bn in 2007 and is predicted to double to $80bn by 2010. |
| When Microsoft announced its offer in February it said that "together Microsoft and Yahoo can offer a competitive choice while better fulfilling the needs of customers and partners". | When Microsoft announced its offer in February it said that "together Microsoft and Yahoo can offer a competitive choice while better fulfilling the needs of customers and partners". |