In an e-mail to the employees on Friday, Microsoft Platforms and Services Division President Kevin Johnson said it is looking for a constructive dialogue with Yahoo’s board, management, shareholders and employees on the value of the combined entity, strategic and financial merits of such a deal. He also pointed out that if Yahoo!

agrees to proceed with the bid, Microsoft expects to close the transaction in the second half of 2008. “Until this proposal is accepted and receives regulatory approval, we must continue to operate our business as we do today and compete in this rapidly changing online services.”