Internet and software giant Microsoft has met with executives at Yahoo! to discuss its takeover bid, sources have revealed.According to the Wall Street Journal (WSJ), people familiar with the matter have said that top executives from the two companies met at Yahoo!'s Sunnyvale headquarters in California.
The meeting is said to be the second to have taken place in recent weeks.
During the discussions, Microsoft - which announced the stock-for-cash takeover bid in January - did not show any willingness to raise its offer, the sources reported.
Meanwhile, Yahoo! executives continued to refuse to enter formal negotiations without a sweetened bid.
The WSJ states: "Microsoft appears to be betting that the slowing economy will undercut Yahoo!'s performance and prompt shareholders to pressure management and the board to reconsider its offer."
Recently, sources with insider knowledge on the issue denied that Microsoft is likely to raise its bid for the search engine provider, despite speculation to the contrary.
One source told the WSJ: "Why would Microsoft bid against [itself]? The company sees no reason to bid against itself."
The strategists went on to say that Microsoft feels comfortable waiting because, given the worsening economic conditions and with the stock market showing signs of weakness, the $31-a-share bid it proposed is beginning to look increasingly generous.
They also stated that Microsoft does not feel the need to pay any more for the firm due to the fact that no viable strategic alternatives have emerged.
