Amidst lots of guess work from the blogosphere about how will Yahoo respond to Microsoft, a letter has been sent out to Microsoft from the Yahoo’s Board of Directors and CEO Jerry Yang.
As anticipated by the blogosphere, the letter mentions that:

They will not let Microsoft acquire the company at this value
Yahoo is important for [...]

Steve Ballmer, on behalf of Microsoft, has sent out a letter to Yahoo’s Board of Directors to expedite the process of making a decision giving out a three weeks notice for them to decide on the offer or face problems.
The main points mentioned in the letter by Ballmer proving that the Microsoft’s offer is a [...]

 
According to Reuters, Alibaba.com is seeking investments to buy out Yahoo’s stake in the company.  Yahoo had merged its Chinese operations with Alibaba in 2005 and got a 39% stake in return.
The move by Alibaba is an indicator of two facts:

Alibaba believes that Microsoft will be able to acquire Yahoo.

Alibaba is not in favor of [...]