Earlier today Yahoo rejected Microsoft's offer saying it was too low - that it undervalues Yahoo. Some Flickr users were probably hoping this would be the end of it but InfoWorld reports that Microsoft finds it "unfortunate" that Yahoo has not embraced their "fair" offer.
In a statement, Microsoft said it's "unfortunate" that Yahoo "has not embraced" its proposal to combine the two companies, and the rejection of the offer "does not change our belief in the strategic and financial merits of our proposal."
The company also hinted that it may take the offer directly to Yahoo's shareholders, a move that could result in a hostile takeover.
"As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo's shareholders are provided with the opportunity to realize the value inherent in our proposal," Microsoft said in its statement.
Earlier Monday, Yahoo formally rejected Microsoft's bid to acquire the company in a half-stock/half-cash purchase, saying it undervalued Yahoo.
InfoWorld also said that Yahoo may be rejecting the offer in an effort to elicit a higher bid from Microsoft. A hostile takeover could be a difficult and costly maneuver for Microsoft to attempt. You can see the press release of Microsoft's response here. InfoWorld isn't the only source noticing the potential of a hostile move by Microsoft - see here and here. The Register'sheadline reads, "Microsoft rejects Yahoo! rejection." Still more discussion here on Techmeme.
