• Reuters , Tuesday, February 19, 2008 11 AM

Microsoft's Bill Gates says "there's nothing new" vis-à-vis the software giant's Yahoo offer: "We've sent our letter and we've reinforced that we consider that it's a very fair offer," adding there are no plans to up a bid that was originally worth $31 per share. However, since Microsoft's offer more than two weeks ago, its stock has plummeted more than 12 percent, reducing the offer price to around $29 per share, or $41 billion.

Yahoo, of course, rejected the offer, saying it "substantially undervalues" the company's assets. The Web giant has since explored mergers or partnerships with Google, Time Warner's AOL and News Corp.'s Fox Interactive Media in an attempt to remain independent, while unlocking shareholder value. However, analysts claim these deals wouldn't pay off nearly as well as a Microsoft sale. If neither company budges, then Gates and co. could bring the matter directly to Yahoo's shareholders, and try to overthrow the company's board.

In the interview, Gates says Microsoft will continue to invest in the Web even without Yahoo. "But we also see that we'd get there faster if the great engineering work that Yahoo has done and the great engineers there were part of the common effort."

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