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Yahoo Inc on Monday rejected as too low Microsoft Corp's unsolicited $41.4 billion takeover offer, a move viewed by Wall Street as the first salvo in an effort to get the software maker to raise its bid.

Yahoo Inc on Monday rejected as too low Microsoft Corp's unsolicited takeover offer, currently valued at $42 billion, putting the ball back in the software giant's court to pursue a deal. In a statement, Yahoo said its board unanimously concluded the proposal was not in the best interests of its shareholders.

A major investor in Yahoo Inc has met with Microsoft Corp Chief Executive Steve Ballmer to see if he would raise a $42 billion unsolicited offer for the company, the New York Post reported on Friday. Capital Research and Management, which owns more than 11 percent of Yahoo shares and more than 6 percent of Microsoft, wants to know how much more the software maker might pay if Yahoo rejects the initial offer, the Post said, citing a source familiar with the meeting.

A major investor in Yahoo Inc has met with Microsoft Corp Chief Executive Steve Ballmer to see if he would raise a $42 billion unsolicited offer for the company, the New York Post reported on Friday.

Yahoo Inc's board of directors is to meet on Friday to discuss Microsoft Corp's $44.6 billion buyout offer, the TechCrunch blog said, citing unnamed sources. Yahoo officials could not immediately be reached.

Shares of Yahoo are trading at a nearly 7 percent discount to Microsoft's bid offer, but some analysts are contending that the world's largest software maker may raise the stakes to capture one of the Web's most recognizes brands.

Time Warner CEO told investors on a conference call on Wednesday that the company will split off AOL Internet-access service and eliminate 100 jobs.

It has become pretty clear that Yahoo CEO Jerry Yang does not want to merge the company he co-founded as a Stanford student with Microsoft.

Skeptical investors are trading Yahoo Inc shares at a 6.5 percent discount to Microsoft Corp's unofficial offer price, but some Wall Streeters expect the software giant to raise its bid.

Rupert Murdoch, Chair of global media giant News Corporation, has said that he would not be making a rival bid for Yahoo, in response to Microsoft's $44.6 billion offer made last week.

Yahoo Inc. said on Monday it will stop operating its online music service Yahoo Music and divert its customers to Rhapsody music service, which is run by RealNetworks Inc and Viacom Inc, in a deal that will allow Yahoo to promote Rhapsody on its site.

U.S. stocks finished lower on Monday following last week's big rally, as investors trimmed positions caused by troubled financial sectors which suffered from several broker downgrades.

Yahoo Inc would consider a business alliance with Google Inc as one way to rebuff a $44.6 billion takeover proposal by Microsoft, a source familiar with Yahoo's strategy said on Sunday. Yahoo management may revisit talks it held with Google several months ago as an alternative to Microsoft's bid.

U.S. stocks markets closed out the week on an up note on Friday, ending Wall Street's best performing week in nearly five years, after Microsoft Corp's $44.6 billion bid for Yahoo Inc pushing technology stocks ahead of other sectors.

Microsoft CEO Steve Ballmer is taking his company's $45 billion bid to acquire Internet portal Yahoo public after being rejected last year, saying it is in the best interest of both firms to better compete in the online market.

Below is the text of the letter that Microsoft sent to Yahoo!'s Board of Directors as it made an unsolicited offer for portal and search engine Yahoo, Inc. worth $31 per share, or $44.6 billion:

Microsoft CEO Steve Ballmer believes Yahoo has not improved its competitiveness in the year since it proposed a merger and now believes the only alternative is to combine the companies in a deal worth $45 billion.

Microsoft Corp. made a move on Friday to bolster its Web operations against Internet search leader Google by making an unsolicited offer for Internet portal and search engine Yahoo, Inc. worth $31 per share, or $44.6 billion.

Yahoo, Inc's non-executive Chairman Terry Semel is stepping down from its Board of Directors, the company said Thursday, ending ties with the Internet firm after running it as CEO from 2001 to 2007.

Microsoft Corp. continues its bid to topple Google and Yahoo by announcing on Tuesday it will become the new provider of paid search and contextual advertising links on sites run by The Wall Street Journal.

Yahoo Inc reported a drop in quarterly profit on Tuesday and its shares fell nearly 7 percent as Chief Executive Jerry Yang predicted a tough 2008 amid a weakening U.S. economy. Yahoo reported a fourth-quarter profit of $205.7 million, or 15 cents per share, down from $268.7 million, or 19 cents per share, a year ago.

As the Britney Spears debacle continues to unfold daily on tabloids around the world, a new study estimates she is worth a staggering $120 million to the US economy.

Baidu.com Inc led China's search engine market in last year's fourth quarter with a 60.1 percent share, research firm Analysys International said on Friday.

Yahoo is poised to lay-off hundreds of workers, according to reports published Tuesday, as the internet icon strives to sharpen its focus and boost its sagging stock.

Velocity Interactive Group, the newly formed digital-media investment firm announced Thursday it will invest $10 million in Broadband Enterprises, an online video ad network.

Internet Search Engine Wikia, a project from Wikipedia co-founder Jimmy Wales and his company Wikia launched today as a new competitor to major search engines such as Internet search leader Google, Yahoo, MSN and Ask.com.

A Chinese appeal court upheld an earlier music piracy ruling on Thursday, that found Yahoo China guilty of allowing mass copyright infringement through music downloads from its Website, the International Federation of the Phonographic Industry (IFPI) said.

Internet company Yahoo and Latin America's top mobile phone company America Movil said on Thursday they have struck a deal to provide mobile Web services to 16 countries in Latin America and the Caribbean.

Microsoft Corporation, Google Inc., and Yahoo! pay fines amounted $31.5 million with the U.S to resolve claims on their past promotion of illegal gambling, United States attorney said Wednesday.