The board of directors of Yahoo Company met on Friday 11 April to discuss the best possible recourse to dissuade Microsoft’s takeover offer. There are strong chances of Yahoo! even collaborating with Time Warner's AOL. A series of developments have occurred following Microsoft’s threat to Yahoo for a takeover and this is what caused the Yahoo directors get together for a meeting.

 

Industry insiders state Microsoft is also coaxing Rupert Murdoch's News Corp to put forward a joint bid for Yahoo. If this deal materializes, it would create a giant online body that will comprise Yahoo!, Microsoft's MSN and News Corp's MySpace. Analysts opine Microsoft is most likely to get hold of Yahoo!, especially now that News Corp is also looking at joining forces with the global IT giant.

 

Yahoo!, on the other hand, refused Microsoft's buyout offer of $31 per share stating it was very low. Responding that its offer was fair, Microsoft has warned it might further drop the price quoted. In order to stave off the hostile takeover bid, Yahoo is thinking of joining hands with Time Warner’s AOL to get out of the fix. If it happens, the deal would then see Time Warner provide Yahoo! cash investment in exchange for a 20 per cent stake in the combined AOL-Yahoo business.