Microsoft announced an unexpected 44.6-billion-dollar bid for Yahoo Friday, as a latest move by the software giant to challenge Google's dominance of the lucrative online search and advertising markets.(Xinhua/Reuters Photo) Photo Gallery>>>

    LOS ANGELES, Feb. 12 (Xinhua) -- Microsoft said Monday that it would continue its efforts to take over Internet search engine and web portal giant Yahoo although its former acquisition offer was turned down.

    The software giant didn't say what steps it would take, but called its former offer price "full and fair."

    "It is unfortunate that Yahoo has not embraced our full and fair proposal to combine our companies," said a Microsoft statement. "Based on conversations with shareholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties."    

The Yahoo headquarters in Sunnyvale, California.(Xinhua/AFP Photo) Photo Gallery>>>

    Yahoo announced earlier in the day that its board of directors has decided to reject Microsoft's 44.6-billion-dollar bid, arguing the offer "substantially undervalues" the Internet giant's worth.

    Microsoft's proposal is "not in the best interests of Yahoo and our stockholders," said the company's board of directors in a statement.

    Microsoft said investors, consumers and advertisers would benefit from the two companies' combination, which would create a more formidable competitor to Google in the Internet search and online advertising markets.

    It is not clear whether Microsoft would raise its offer price. Industry analysts said Microsoft could either raise its offer or take the original offer directly to Yahoo's shareholders.

    Microsoft's effort to buy Yahoo is seen widely as the software giant's latest attempt to challenge Google's dominance of the lucrative online search and advertising markets. The deal would be the largest in Microsoft's 33-year history.

    Having been overtaken by Google as the No. 1 search engine, Yahoo is also under pressure from the increasing popularity of social networking websites such as Myspace and Facebook.

Yahoo rejects Microsoft's buyout offer, citing lower price

    LOS ANGELES, Feb. 11 (Xinhua) -- Yahoo said Monday its board of directors has rejected Microsoft's 44.6-billion-U.S.-dollar unsolicited bid to buy the company, arguing the offer "substantially undervalues" the Internet giant's worth.

    "The proposal is not in the best interests of Yahoo and our stockholders," the Silicon Valley search engine giant said in a statement.  Full story