Yahoo Hopes Q1 Report Will Boost Microsoft Bid

All eyes will be on Yahoo's first-quarter earnings report tomorrow; the company hopes to use solid results to pressure Microsoft into sweetening its takeover bid, the Wall Street Journal reports. The report comes just 2 days before Microsoft's own and 4 days before the deadline the latter set for a deal to avoid a hostile takeover. Yahoo is expected to meet modest projections for first-quarter growth.

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The market's reaction to the reports could also affect a potential deal, the Journal notes: Tech stocks rallied last week, lifting the value of the Microsoft's offer closer to the $44.6 billion it was worth when made Jan. 31. Another 4% boost would return it to the original value of $31 per Yahoo share; stockholders are looking for something closer to $35. (Read more Yahoo stories.)