Of course Yahoo doesn't agree to the newest proposal.
I have written before that I thought the original Microsoft deal was a good one for Yahoo shareholders and that they should accept.
They didn't, Icahn started getting involved, Microsoft went away and Yahoo was widely criticized for having blown it.
Fast forward to the last couple of weeks. Icahn is under water (SAI estimated his YHOO cost basis at $25/share with the stock around $23.50), and Microsoft is sniffing around again.
The offer this weekend consists of Microsoft taking the search business and Icahn taking the rest, selling assets, claiming he will increase returns to shareholders, dump his stock,etc. There's no way that Yahoo would agree to this, and they didn't, because they don't want to be broken up in the first place. They are now willing to sell the whole company to Microsoft for $33, though.
Then Microsoft can keep the search business and let Icahn have the rest.
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