"The Yahoo! Board of Directors has carefully reviewed Microsoft's unsolicited proposal with Yahoo!'s management team and financial and legal advisors and has unanimously concluded that the proposal is not in the best interests of Yahoo! and our stockholders." With that unceremonious dismissal, Microsoft's $31 a share offer was turned down this morning.

"After careful evaluation," said the company in a statement, "the Board believes that Microsoft's proposal substantially undervalues Yahoo! including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments."

"The Board of Directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximize value for all stockholders," the statement continued.

Goldman, Sachs & Co., Lehman Brothers and Moelis & Company are acting as financial advisors to Yahoo! The Yahoo! Board of Directors was careful to stress that it had "carefully reviewed" Microsoft's unsolicited $31 a share proposal.

As of this writing it is not clear whether Google will respond publicly in any way to this latest development. Google was quick to condemn Microsoft's original bid as "troubling" and potentially a jeopardy to the underlying principles of the Internet: openness and innovation.