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The Wall Street Journal believes that Yahoo! will decline the $44.6 Billion Offer made by Microsoft to acquire it tomorrow. Should this happen tomorrow, it might set some wildfires tomorrow, as this would probably be considered as a bold move by Yahoo.

Yahoo has said that it will not consider any offer made by Microsoft under 40$ a share. Over a series of meetings, the Yahoo board believes that this offer seriously undermines the true value of Yahoo. If at all Yahoo pushes for atleast 40$ a share, this would mean another 30% premium for Microsoft, taking the potential bid to about 60$ billion.

The timing of Microsoft’s Offer made one thing very clear and that was that it is trying to buy Yahoo for cheap. Looks like the Yahoo Board have decided to put up a bold face, and have decided to raise the bid price beyond the 40$ mark. Also the original Microsoft offer on February 1st has itself lost value, as the bid was half cash and half stock, and Microsoft’s Stock price has fallen nearly 13% in this period.

I’m not very sure of what the Yahoo Board intends to do, but it does seem like, they want to be purchased by Microsoft after all. They are just trying to make a little bit more money on this deal. This also shows, just about how week Yahoo has become over the years. If they really wanted to say no, they would have said a firm No!

While the true reaction of the Yahoo’s board will be known tomorrow, but at the moment the ball is in Microsoft’s court. They have two options, one is to raise the offer price, or else go for a hostile takeover. Either ways it looks like Yahoo might end up being the cat in Microsoft’s Lion kingdom. But I’d like to see Yahoo fight back and fend off this acquisition, and take a new approach to their business and make themselves competitive again.

Michael Arrington from Techcrunch has an interesting analysis on this deal.