Yahoo have rejected a $44.6 (£22.4Bn) bid from Microsoft but are continuing talks with Google. Yahoo believe the $23Bn bid from Microsoft undervalues the company but there is no reason to believe Microsoft and indeed Bill Gates will not come back with a larger offer.

It’s well known Microsoft is struggling in the online marketplace with MSN Search taking just 8.5% market share in searches and a takeover of Yahoo may just eat into Google’s domination.

This is a developing story and I hope to keep up to date as best I can, unlike other blogs I work alone. If anyone viewing this article has new information I encourage you to post it via replies. This is a major story for those involved in the online world and your input would be greatly appreciated.