Matthew Karnitschnig reporting for The Wall Street Journal:

Yahoo’s board believes that Microsoft’s is trying to take advantage of the recent weakness in the company’s share price to “steal” the company. The decision to reject the offer signals that Yahoo’s board is digging in its heels for what could be a long takeover battle. The company is unlikely to consider any offer below $40 per share, the person said.

Let’s hope Yahoo doesn’t get burned by a possible shareholder revolt. It’s a really interesting move for Yahoo and I’m anxious to see what happens.

[via DF]