• Reuters, Tuesday, February 5, 2008 11 AM

Microsoft revealed it would finance a portion of its $44.6 billion offer for Yahoo. This would mark the first time in history that Microsoft would borrow money to fund an acquisition -- if the deal goes through. Microsoft believes Yahoo's board will agree to the takeover relatively quickly, but Yahoo over the weekend said it would take "quite a bit of time" to mull all of its option, including staying independent.

Meanwhile, several major publications cite sources who claim that Yahoo was considering a business alliance with Google that would allow the Web giant to remain independent and stave off Microsoft's unsolicited offer.

Microsoft's offered a 50/50 split in stock and cash, and while the company is sitting on $21 billion, CFO Chris Liddell said it would issue debt to finance a portion of the cash. Liddell wouldn't disclose how the debt would be financed or whether Microsoft was already buying Yahoo stock on the open market. Analysts applauded the decision.

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