As expected, Yahoo has responded to Microsoft’s 3 week ultimatum this morning. The bottom line is pretty clear in a letter signed by Jerry Yang (CEO) and Roy Bostock (chairman). In the “Dear Steve” response to Ballmer they state, “we will not allow you or anyone else to acquire the company for anything less than its full value.” They go on to state
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Sunnyvale, Calif. - February 5, 2008 - Zimbra, a Yahoo! (Nasdaq: YHOO) company, and the leader in open source, next-generation e-mail, today announced the availability of Zimbra Collaboration Suite (ZCS) 5.0. ZCS 5.0 includes hundreds of enhancements that expand Zimbra’s access across desktops and devices while setting the standard for Web-based productivity in a business environment, and showcases Yahoo!’s dedication to providing world-class e-mail and collaboration services.
Yahoo!’s global reach and Zimbra’s expansive partner network are fueling continued growth, reaching key audiences including universities, ISPs and small businesses - further extending …

Yahoo Chief Executive Jerry Yang has told employees that the struggling internet pioneer is still examining ways to avoid a takeover by rival Microsoft.
“Our board is thoughtfully evaluating a wide range of potential strategic alternatives in what is a complex and evolving landscape,” Yang wrote in an email.
“What’s become clear in the past few days is how much people care about this company. I’ve heard from many of you, and from other friends and colleagues from around Silicon Valley and across the globe, that we need to do what’s best …

Yahoo Inc would consider a business alliance with Google Inc as one way to rebuff a $44.6 billion takeover proposal by Microsoft, a source familiar with Yahoo’s strategy said on Sunday.
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Yahoo Early history 1994-1996
In January 1994, Jerry Yang and David Filo were Stanford Electrical Engineering graduate students at Stanford University. They started a list of web pages in a campus trailer in February 1994, as a way to keep track of their personal interests on the Internet. The lists were published as a web site named …