Yahoo results will not increase value, says Microsoft

Microsoft says it will not up its offer for Yahoo, despite Yahoo posting better than expected quarterly results yesterday.

Microsoft's takeover offer to Yahoo is worth £21.5bn. Microsoft CEO Steve Ballmer told Reuters, "I wish Yahoo all the success with its results, but it doesn't affect the value of Yahoo to Microsoft."

The global internet services company stuck to its wide-ranging sales growth forecast for the year, of between 3% and 15%.

The firm said there was weakening online advertising demand in sectors like finance, retail and travel.

Microsoft has already set Yahoo a deadline for this Saturday to accept its takeover offer, otherwise face a hostile takeover bid and possibly a lower offer for its stock.