Microsoft may get nasty now that its deadline for a friendly Yahoo purchase expired yesterday. Talks died quietly after Microsoft refused to up its offer from $29.68 a share on Friday; Yahoo execs wanted $35. Microsoft could now press Yahoo, tack back the offer, or deal directly with Yahoo shareholders, the Wall Street Journal reports.
But some shareholders oppose a takeover unless Microsoft raises its January offer of $31 a share. If Microsoft backs off, Yahoo's shares will likely fall 50 cents from their current $26.80 price; they traded at $19.18 before the Microsoft offer. Meanwhile, Yahoo may continue its search advertising venture with Google—which has already seen success and encouraged some at Yahoo to refuse Microsoft's offer.