Microhoo saga not over yet as Microsoft pushes price to $33 per Yahoo share

Microsoft's board agreed to disagree following the Monday deadline for Yahoo to accept their offer to purchase the Search engine company at $29.12 in their original cash-and-stock offer.

The Wall Street Journal reports that Microsoft directors who met on Wednesday to decide what to do after the ultimatum was over and a source close to the transaction told the WSJ that while Yahoo is ready to sell out, there is still a big divide between what Microsoft is ready to fork out and what Yahoo is asking.

The big shareholders, the WSJ continued, are asking for up to $37 while Microsoft has upped its share offer to $33, a 13.3 percent increase over the original asking price.

It looks increasingly likely that only two scenarios will come out of this imbroglio : either Yahoo accepts the offer and walks away with the money, or Microsoft decides to abandon the acquisition and walks away with the money.

Yahoo's decision to partner with Google could also explain Microsoft insistence on getting a deal done now.