Redmond, WA (AHN) - Software giant Microsoft says that there will be no increase in their bid for rival Yahoo! until the latter agrees to hold talks of a buyout.

The announcement was made after two months of anticipation for a deal that captured the attention, and predictions, of almost all market analysts.

"There's no reason to bid against ourselves," said one of a number of Microsoft insiders quoted by the Wall Street Journal.

According to the report, Microsoft's decision to stick with its bid is an expected move, as the company is under no deadline in its acquisition of Yahoo! - a tactic that it is determined to employ in order to better compete with other rival Google, which has dominated the Internet advertising market.

Microsoft's offered amount, which was primarily at $44.6 billion, or $31 per share, was turned down by Yahoo!, which accused Microsoft of "undervaluing" the company. Yahoo! has maintained it will not agree to any merger for any amount under $40 a share.

Yahoo! and Microsoft have had only one meeting since the bid, and Yahoo! has been determined to keep Microsoft at bay, the Journal reported. The company held a meeting with stockholders a few weeks ago, presenting optimistic projections for the coming years in hopes of convincing them to provide backing, instead of jumping over to Microsoft's side.

The presentation reportedly did not do its job, leaving Yahoo! with the threat of Microsoft, a shareholder, filling the boardroom with its executives in a hostile takeover, risking Microsoft's authority in the bid decision.

MarketWatch reported that stock market trends showed Yahoo! shares dipping by 2 percent Tuesday morning, as Microsoft's rose by more than 2 percent.

Based on current prices, the $31-per-share bid is now valued at $29.25.