Microsoft has given the internet media giant three weeks to accept its acquisition offer worth initially around $44.6 billion.
Microsoft had threatened to go hostile with their bid if their offer was not accepted. It is now clear though on how they would go ahead with their bid now.
Microsoft should come out with their new strategy sometime this week.
Yahoo had initially declined the offer made by Microsoft saying that it undervalued the company and was not a good deal for their shareholders.
Yahoo CEO Jerry Yang had said that he is not against the merger of the two companies but he wanted a better price for the investors in the company.
Yahoo has been struggling over the last couple of years with the emergence of Google as the market leader in search and online advertising.
They have been working hard to boost their revenues to stay competitive but those efforts are yet to show some solid results.