Yahoo Board Meets as Buyout Options Grow

Yahoo's board meets today to examine the options for avoiding a hostile takeover by Microsoft, the Wall Street Journal reports. Experts think a Microsoft grab is still the most likely scenario, but the situation has grown increasingly complicated in the midst of discussions of an AOL-Yahoo merger, Yahoo's proposed trial of Google ads, and rumors of News Corp. joining Microsoft's side.

Insiders say Microsoft still plans to go it alone rather than hook up with MySpace owners News Corp. to do a deal for Yahoo—but the flurry of activity is likely to boost Yahoo's value and force Microsoft to sweeten the deal. Upcoming projections showing a big spike in online ad revenue have raised the stakes in the battle for Yahoo even further. (More Google stories.)