New York, NY (AHN) - Market experts predict that software giant Microsoft will eventually raise its $31 per share bid for Yahoo as it attempts to wrestle away market share in the lucrative online search market from chief rival, Google. Despite Yahoo's rejection of Microsoft's initial offer, analysts from Citigroup Investment Research said that the company will most likely succumb and agree to a merger.

"We believe that a Yahoo sale to Microsoft - at a price higher than the initial $31 [per share] bid - is the most likely outcome," Citigroup's Mark Mahaney told investors.

Computer World reported that while Yahoo is currently struggling to evade a Microsoft takeover by turning to other alternative companies for possible bailouts, no other offers could likely rival the bid by the brand behind the Windows operating system.

Regardless, the existence of potential competition, coupled by Yahoo's attempts to thwart a takeover, will be a big reason for Microsoft to up the bid, Mahaney explained.

"While regulatory risk may be material, we continue to believe that limited combined market share allows the deal to go through," Mahaney said according to Wired. "And we would view Yahoo strategic moves as a forcing function to a higher Microsoft bid."

When asked, a spokesperson for Yahoo said the company is "carefully evaluating all of the company's strategic alternatives and will pursue the best course of action to maximize long-term value for shareholders."