yahoo has declared that its not taking interest in merging with microsoft , becouse microsoft has under valued their shares.
so just what next is going to happen

Yahoo's Open rely deniying microsoft's hostile offer
http://www.techcrunch.com/2008/02/11/yahoos-rejection-letter-to-microsoft/

Microsoft's Open Response to the yahoo
http://www.techcrunch.com/2008/02/11/microsoft-responds/