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At this point in time there has been no buyout of Yahoo.  But it seems Yahoo might be trying to get Microsoft to increase  their offer. Yahoo had rejected Microsoft’s  offer of $44.6 billion made earlier this year. Yahoo’s CEO Jerry Yang says Yahoo is poised for accelerated growth. He claims the company has a powerful consumer brand, a huge global audience, and a highly profitable operating model.

According to a report on marketwatch.com, Yahoo is set to reject Microsoft’s $44.6 billion acquisition offer. The report references another news report that cites unnamed sources as saying that Yahoo’s board feels the $31 per share offer made by Microsoft “massively undervalues” Yahoo and fails to take into account “the risk in entering into an agreement that could later be voided by regulators.”

The unnamed source has claimed that Yahoo’s board believes Microsoft is “trying to take advantage of some recent weakness in the company’s share price in order to “steal” the company.”

The unnamed source has also indicated that Yahoo will not consider any offer under $40 per share.

Google is back over the $500 mark, closing the day at $506.80 per share. This while stocks plunged sending the Dow industrials tumbling to their biggest drop since February 2007. Some are talking recession.

Meanwhile, Microsoft and Yahoo closed the day with 3.7% and 1.2% drops in stock value, Micorsoft closing at $29.07 per share while Yahoo closed at $28.98 per share.

With regard to the possible Microsoft Yahoo merger, although Yahoo has yet to respond to Microsoft’s offer to buy them out for $44.6 billion, analysts are saying a merger is likely to happen.

Google Inc. has apparently attacked Microsoft Corp.’s bid to acquire Yahoo Inc. calling it, in the words of Jeffry Bartash and Morning Zhou writing for Marketwatch, “an effort to extend its software monopoly to the Internet”.

Google executive David Drummond has made a statement to the effect that a Microsoft acquisition of Yahoo could undermine open competition on the Internet. In a blog post Drummond wrote [Read more]

While Google stock value continues to decline Yahoo and Microsoft have shaken up the market with an offer by Microsoft to acquire Yahoo.

The talk of a merger has resulted in the buying up of Yahoo stock on a scale that saw an almost 50% increase in the price of a share of Yahoo stock from the previous close of $19.18.

If you ask John C. Dvorak, respected columnist who has written for such lofty publications as Forbes Magazine and currently writes for Dow-Jones’ Marketwach and PC Magazine’s Inside Track, a Microsoft-Yahoo merger is never going to happen. Dvorak writes in his piece “JOHN DVORAK’S SECOND OPINION: Microsoft and Yahoo deal will never consummate - Commentary: It’s a bad idea, plus EU regulators will have a field day” that anyone who thinks this merger will happen is crazy. [Read more]

Not buying yahoo stock might have been a mistake. Microsoft has offered to buy Yahoo for $44.6 billion and shares of Yahoo stock have jumped by 62%. As Rex Crum writes for IMG Direct:

Technology stocks largely closed with gains Friday, but everything else took a back seat to the overwhelming attention given toward Microsoft Corp.’s unsolicited $44.6 billion offer to acquire Internet giant Yahoo Inc.

The deal values Yahoo (YHOO) at $31 a share — a 62% increase over Yahoo’s Thursday closing price of $19.18 a share — and would be the biggest acquisition in Microsoft’s (MSFT) history.

Yahoo shares surged $9.20, or almost 48%, to close at $28.38, while Microsoft shares were down $2.15, or 6.6%, to close at $30.45 as investors reacted to the proposed deal.