I do not think Microsoft will up their offer. The fact that Yahoo! stock price did not rise past 31 dollars after Microsoft makes their offer means that the new buyers of the stock did not see Microsoft making an improved offer.

With 71% percent of the stock owned by institutional investors and no protection against hijacking of the board, I think Microsoft will go hostile and went ahead to make tender offers to those 71% people.

I was very pro the merger with the initial deal, but now, Microsoft should definitely not up their offer; doesn’t seem very worth going into debt now. I think that Microsoft should instead rally up the stockholders and do the deal that way and kick out the board and replace them with more workable individuals (for Microsoft and Yahoo!’s stockholders).