Yahoo will formally reject Microsoft's 44.6 billion USD merger offer in a letter on Monday February 11, 2008. Yahoo!'s decision to spurn the offer has many speculating whether the company is simply seeking a better deal or whether it has deep seated objections to the takeover bid. Yahoo!'s decision also increased the likelihood of a 'drawn-out battle between the two technology titans.' Microsoft could increase the value of their offer or opt to take their existing bid directly to shareholders. Yahoo!'s options have been limited by poor earnings and a low share price. Reports suggest that the Yahoo! board is concerned that the merger may stir anti-trust concerns and are also hoping to raise Microsoft's bid from $31 a share to $40 a share. Microsoft is hoping the deal will help it compete with search giant, Google Inc., and has made the case that the company's offer is the best deal for Yahoo! shareholders. Microsoft investors, meanwhile, have had a 'tepid' reaction to the deal. Some analysts believe that Yahoo!'s rejection of the offer is indeed final. The Yahoo! board has also discussed the possibility of outsourcing its advertising to Google though such a move threatens to prompt regulatory review. Should Microsoft undertake a hostile takeover bid, there may be an exodus of nervous employees from Yahoo! and even the long shot possibility of Yahoo! activating a 'poison pill.'