Two months after making its initial takeover bid, Microsoft has warned Yahoo! that it will lower its offer if the search engine provider fails to come to an agreement within three weeks.In a letter to the Yahoo! board dated April 5th, Microsoft chief executive Steve Ballmer said that "now is the time" to negotiate the final terms of the deal, Reuters reports.
Mr Ballmer argues that the economy and the market for internet stocks have declined since the offer was originally put forward and Yahoo!'s share of search and advertising business has been cut.
The software and internet giant is said to be attempting to convince Yahoo!'s directors to negotiate a friendly deal or else face a battle for their jobs at the company's next annual general meeting.
Commenting on the issue, Jeffrey Lindsay, an analyst at wealth management firm Sanford C Bernstein, said: "Microsoft is looking a bit frustrated. It is a pattern of stalling on the part of Yahoo!."
He went on to say that the search engine provider's unwillingness to negotiate makes it increasingly likely that Microsoft will be forced to adopt hostile tactics.
According to recent reports in the Wall Street Journal, senior personnel from the two companies have met twice in recent weeks.
Sources close to the issue said that Microsoft showed no indication during the discussions that it was prepared to raise its bid, while Yahoo! executives continued to refuse to enter formal negotiations without a sweetened offer.
