Microsoft CEO Steve Ballmer has given Yahoo’s board three weeks to accept Microsoft’s $31 per share buyout offer. If Yahoo still does not move, he said Microsoft will put the offer in front of Yahoo shareholders and initiate a proxy fight. He also intimated that Microsoft might revise its $40 billion bid. Downward.

Money quote from Ballmer’s letter dated April 5:

“The substantial premium reflected in our initial proposal anticipated a friendly transaction with you. If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal.”

Barbara Darrow can be reached at bdarrow@techtarget.com.