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Yahoo shares RISE above Microsoft's lower offer price

Yahoo share prices (opens in new tab) crept up to $29.04 which is slightly more than what Microsoft would be offering per share through its combined offer of shares and cash, which is worth $28.80 at the time of writing.

The Register rightly (opens in new tab) underlines that it would be better for shareholders to sell their shares on the open market than go Microsoft's way, especially if the Software giants' shares tank in the short run.

Other parties, including Google and even Baidu, are reportedly interested in bidding for Yahoo, although none have came forward with a definitive offer.

Although Yahoo has clearly stated that it would like to go alone in a three-player search advertising market, an alliance or a partnership with Google à la Myspace might actually be a better solution for the ailing giant.

UBS analysts (opens in new tab) also acknowledge that Microsoft will have to up the ante and push the offer for Yahoo even further to around $34, which would value Yahoo at $49 billion.

The fight for Yahoo's control however is far from being over as regulators will have their say over whether a Yahoo acquisition might be detrimental to other smaller competitors like Ask.com or AOL.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.