Despite recent speculation that Microsoft was preparing to raise its bid for Yahoo!, sources familiar with the software and internet firm's plans have denied that such a move is likely. Insiders who did not wish to be identified told the Wall Street Journal that Microsoft does not feel the need to pay more for the search engine provider because no viable strategic alternatives have emerged.
One source stated: "Why would Microsoft bid against [itself]? The company sees no reason to bid against itself."
The strategists also stated that Microsoft feels comfortable waiting, with a recent Yahoo! roadshow presented by its executives - during which they attempted to galvanise support among US investors and prove the bid was too low - described by the sources as "underwhelming".
Additionally, the experts added that, with economic conditions worsening and with the stock market exhibiting weaknesses, the $31-a-share bid proposed by Microsoft is beginning to look increasingly generous.
The sources' comments come shortly after Mark Mahaney, an analyst with financial services firm Citigroup, stated during a meeting with clients that Microsoft would in fact be prepared to raise its bid, since it would not want to walk away from a potential deal.
According to Mr Mahaney, Microsoft may up its offer for the search engine provider because it has yet to make significant inroads in online advertising, particularly compared to market leader Google.
