With stakes this high, a
betting pool seems natural

The ongoing drama between the internet's biggest players enters a crucial phase as Microsoft, Yahoo and Google all plan their next moves.

The Wall Street Journal and Time report Microsoft is moving forward with plans to mount a hostile bid for Yahoo after months of asking politely — at least in business terms — to buy the company.

CEO Steve Ballmer said he has a figure he's willing to pay to buy Yahoo, though how it differs from the $44.6 billion Microsoft offered was not revealed.

Ballmer is under pressure to complete the deal, which would make Microsoft the second-biggest competitor in the online ad industry. Meanwhile, Yahoo CEO Jerry Yang feels the pinch to hold out for as much money as possible. Yang has often stated Microsoft's offer undervalues Yahoo, though he's never said by how much.

Yahoo is on the verge of signing a broad deal to outsource search ad sales to Google. The two engaged in a two-week test partnership, the results of which both parties were pleased with. This may become a negotiating chip in Yahoo's favor.

A deal between Yahoo and Google could add up to $1 billion to Yahoo's annual revenue. It will also attract the notice of federal regulators, which have already begun examining the results of the short-term partnership.

Formal announcements on either front happen as soon as today.