As reported earlier this week, Microsoft's board met Wednesday but failed to come to a decision on what the next step would entail. The company had given Yahoo until last weekend to agree to the proposed acquisition or face the possiblity of a nasty proxy fight. An announcement was expected to be made by today, though the Journal said its sources warned that Microsoft may delay.

In a company assembly held Thursday, Microsoft CEO Steve Ballmer told employees that he knows the amount he would spend to acquire Yahoo and boost the company's presence on the Internet playing field.

"We're willing to pay for that at some level, and beyond that level we're not willing to pay for it," he said. "I know exactly what I think Yahoo is worth to me. I won't go a dime above, and I will go to what I think it's worth if that gets the deal done."

Ballmer declined to reveal the exact amount, and did not disclose whether Microsoft is contemplating on raising February's unsolicited bid of $44.6-billion.

The offer is currently valued at roughly $42.4-billion, or $29.48 per share, based on Microsoft's closing stock price Thursday. Yahoo has rejected the offer, saying it undervalues the company. Microsoft's board has been considering whether to raise the bid to as much as $33 per share, as reported by the Journal.

Though Ballmer did not reveal any new information on the company's efforts to buy Yahoo during the meeting at Microsoft's Redmond, Washington headquarters, he did say that the company would announce "something in relatively short order."

Ballmer also said that acquiring Yahoo is just one part of the company's overall strategy to go head to head with Google in search and Web advertising. He added that if neither a civil nor a hostile deal "look good," he is willing to give up.