The mystery continues. All types of guesses are being made as to what will happen, but something will be known very soon according to Microsoft.
Microsoft has indicated that they might even walk away from this. However most feel if they do they will come back later. Right now most seem to feel there are three possible things that could happen.
1. Proxy battle
2. Microsoft offers more money
3. Microsoft walks away
If Microsoft walks away now, Yahoo stock would be expected to drop. If Microsoft comes back with a offer later the offer would seem more attractive because of how much Yahoo dropped. At least that is what some are thinking.
The Microsoft board met yesterday but evidently wasn't able to decide what their next step will be, but something is expected in the very near future.
Here are two articles that cover the latest in all of this:
Bloomberg.com: News
Will Microsoft walk away from Yahoo bid? - MarketWatch