Yahoo has beaten the estimates somewhat with a 14-percent greater earnings gain over 1-year ago. Analysts were estimating earnings of $1.32 billion and Yahoo announced the actual number was $1.35 billion this quarter.

But, Microsoft has not blinked because of the announcement. In fact, Microsoft CEO Steve Ballmer made a preemptive announcement that Yahoo’s earnings would not affect the bid price for his company to take over Yahoo.

In fact, Ballmer has stated that Yahoo has until the end of this week to accept his offer or face a proxy campaign that could lower the price off the $31 per share offer that is currently on the table. Critics see this MicroHoo merger as a negative since it will shorten the field of players in the search marketplace.

Stay tuned as this has the makings of a very bumpy ride in the days to come.

Filed under: Yahoo