Microsoft could formally announce a hostile takeover bid for Yahoo today, according to the Wall Street Journal.

"With the right circumstances it'll happen. Without the right circumstances it won't happen," Microsoft CEOO Steve Ballmer told the newspaper. Ballmer also told Microsoft employees on Thursday, "I will go to what I think it's worth if that gets a deal done," the report said.

Microsoft's board met on Wednesday to discuss its next step for the deal, announced on February 1, which offered $44.6bn for the internet company. Yahoo rejected the offer, leaving Microsoft with the choices of walking away or attempting a hostile takeover. The report quoted people familiar with the matter in regards to the lean towards a takeover fight.

Microsoft is also considering raising its bid, from over $29 per share, to $32 or $33 per share. Yahoo rejected that offer, stating that a fairer valuation is $35 to $37 per share. As Microsoft's own share price has declined since the February offer, the company would have to adjust its offer in order to reach the original terms of the deal, a mixture of cash and Microsoft shares.

Yahoo took its own steps Thursday, moving closer to an agreement with Google to begin carrying its ads, a deal that would bring Yahoo up to $1 billion more per year in revenue and make a Microsoft takeover more difficult.

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