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Report: Microsoft Raises Yahoo Bid Slightly

In a leak to The Wall Street Journal, a softening Microsoft says it's willing to raise its $31 per share offer to $32 or $33, but Yahoo wants between $35 and $37. The companies are still a few dollars apart, but at least it looks as though Microsoft would rather not go hostile. But it also may not budge. Microsoft has been lobbying major Yahoo shareholders for their support, but the software giant has grown reluctant to go hostile with its bid, but that doesn't necessarily mean that Yahoo has the upper hand-a stalemate could still end with Microsoft walking away.

According to Silicon Alley Insider's Henry Blodget, "This leak is obviously a calculated attempt to dangle another few dollars in front of Yahoo shareholders in hopes that they will put pressure on Yahoo to strike a deal." This means Microsoft will probably adopt a wait-and-see approach to see how the leak affects Yahoo. Blodget believes that because the companies are now no more than $4 apart, "a deal suddenly seems a lot more likely."

Microsoft is completely following Steve Ballmer's lead on this one, adding that the company's CEO has been weighing whether to raise the bid or walk away altogether. Clearly, he doesn't want a proxy fight.

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