After a week long wait, and after a meeting on Friday, Yahoo!'s board apparently covered all possible responses to Microsoft bid to purchase it. Yahoo! is unhappy with the 44.6 billion dollar offer or $31 per share bid as the offer "massively undervalues" the company, and that anything below $40/share is needed to even be considered by Yahoo!. The board also thinks the Microsoft is trying to take advantage of the company's current low to "steal" it.
Apart from making a decision on the bid, the board also spent time covering options for maintaining Yahoo! is a viable entity, and how it might get the Redmond giant to increase their offer value. An official statement on declining the offer is expected to be posted by Yahoo! on Monday.
Given the circumstances, Microsoft might not be unwilling to attempt a proxy fight to push out Yahoo's board. Moreover, the fight could increase the chances that key Yahoo! employees quit the company. Less-hostile options seem to be more desirable, such as recruiting big shareholders which could pressure Yahoo! to negotiate with Microsoft on a price favorable to the Redmond giant.
There could even be some surprising outcomes of the meeting, such as Yahoo! to come out with an action plan to restructure and not just stop with rejection.
While it's being said that Yahoo!'s 'No' could simply be a polite way to ask for some more money, it could very well be a bold 'No' as well. If this deal doesn't materialize there are projections that Yahoo!, could be sued by its stockholders.
The various options before Yahoo! have been explored by analysts, and which one of them it goes along, if at all it does, still remains to be seen.