Yahoo's Next Move?

It seemed like a good idea at the time .. but now Yahoo has rejected Microsoft's proposal to buy it for 44.6 billion dollars.

Is this a stall tactic? It wouldn't be the first. With most contract negotiations, there is a first offer, a coy denial, and, eventually, a compromise with a handshake. Not sure how eager Yahoo and Microsoft are to shake hands, but at some point, a deal seems to to be coming.

How do we know this? The markets. Yahoo stock did not fall when it rejected the deal that boosted said stock price by 50 percent. That means Wall Street is confident Yahoo make actually get a better offer. Microsoft stock is still slipping .. perhaps the consensus is that the Redmond Giant will come up with a better offer.

Meanwhile, there is also talk of some sort of a Yahoo/AOL tie-up. This would give Yahoo even more coveted "eyeballs," but would that put a dent in Google's armor?

We'll follow developments as they happen today, and keep you in the loop.