Microsoft issues Yahoo an ultimatum

Yahoo may be forced to talk to Microsoft about the offer soon

Microsoft on Saturday issued a letter to Yahoo's board of directors saying that it is tired of waiting for the online firm to start negotiations. It will give the company three weeks to come to an agreement before it makes its case to shareholders.

The letter from Microsoft CEO Steve Ballmer claims that since the bid was placed for Yahoo, the latter has done nothing to help progress the negotiations. To make matters worse, "public equity markets and overall economic conditions have weakened considerably", lessening Yahoo's value to Microsoft since the company offered a 62 per cent premium on Yahoo's stock.