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  Report: Microsoft rethinking Yahoo offer
Time: 12:07 EST/17:07 GMT | News Source: Ars Technica | Posted By: Kenneth van Surksum

Microsoft, the smaller web giant, wanted to acquire Yahoo, the larger web giant. Sure, it's possible for a snake to swallow a hippo, but as the protracted back-and-forth between the two demonstrates, the process can take ages. Furthermore, there's no guarantee that the result will be favorable for either of the two parties involved. Now, Reuters is reporting that Microsoft is "evaluating" its offer due to deteriorating market conditions.

According to the Wall Street Journal, when Microsoft and Yahoo execs met this week in Sunnyvale, CA, they failed to move closer to an agreement. Soon after the initial proposal was made public, we learned that Microsoft might need a loan for the acquisition. Yahoo eventually demanded more money, but Microsoft has refused to up its offer. The stubbornness of both companies seems to be grinding the whole process to a halt; it must be frustrating for Microsoft, but Yahoo is arguably content.

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