Microsoft apparently wasn't too impressed with Yahoo's latest pronouncement that its rosy future warrants a bid of at least $40 per share, or $9 per share more than Microsoft's original offer.
However, Microsoft might ultimately have to raise its offer, especially if Yahoo hits the targets set out in a press release. Paying $40 per share would add $12 billion to the $41 billion Microsoft
originally offered. At that price, the software giant would be better off buying AOL parent Time Warner.
Time Warner would probably end up selling for upwards of $85 billion,
but Steve Ballmer and co. might end up with more value for their money considering its powerful digital properties like AOL, AIM and Bebo, not to mention its movie, television, cable and publishing
properties (which Microsoft could easily spin off).