Microsoft really knows how to make it’s bold moves to win over their competitors. When news had started to carry on about Microsoft meeting up Yahoo for some settlement. Hope were up if the two rivals had it’s chance of finally meeting halfway but instead Microsoft does not have all the time to wait as it sets up a deadline to Yahoo.

It was a clear cute warning to the board of Yahoo on Saturday when Microsoft said that if the merger agreement was not completed in the next three weeks, Microsoft has no choice but to go directly and offer with a probable lower price to Yahoo shareholders themselves.

It was a warning made by Microsoft’s chief executive Steven Ballmer through a letter sent via email. The letter had a plus as Steven Ballmer stated his dismay when Yahoo refused to enter into the said formal negotiations over Microsoft’s takeover bid last January 31 saying that if they did not sign agreement before the deadline Microsoft will oust or buy off Yahoo’s board.

Mr. Ballmer wrote, “If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo board, If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective, which will be reflected in the terms of our proposal.”

Yahoo didn’t comment any further with Steven Ballmer’s letter.

To have a brief scope of Microsoft’s offer to Yahoo in cash and stock was an initial value of $44.6 billion or $31 dollars per share but after a decline in Microsoft’s shares, Yahoo’s value is now worth $42 billion.

Yahoo had a formal rejection letter for Microsoft’s offer saying that it is substantially undervalued. On the other end Microsoft defines the value of the offer as a 62 percent premium over Yahoo’s closing price last January 31, saying that it is of a generous offer and committed in its refusal to raise it.

Mr. Ballmer also stated in his letter Yahoo’s status that over the two month’s since Microsoft made it’s offer, Yahoo’s over all stock market has deteriorated and Yahoo appears to have weakened.

Mr. Ballmer wrote, “By any fair measure, the large premium we offered in January is even more significant today, we believe that the majority of your shareholders share this assessment, even after reviewing your public disclosures relating to your future prospects.”

Mr. Ballmer also said that he is aware of Yahoo’s search for other alternate offers aside’s from Microsoft. That in recent months Yahoo had been exploring possible partnerships or combinations with AOL, Google, and the News Corporation in attempt to over run Microsoft. The conversation with Yahoo and these companies are still ongoing coming from sources that is familiar with the said matter.

Knowing this Ballmer said that Microsoft’s offer is the only offer that is feasible for that matter through saying that, “only alternative put forward that offers your shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers and consumers.”