As each day passes, the Microhoo soap opera becomes just a little more absurd.

The latest report from The Wall Street Journal didn't use the word stalemate, though it may as well have. Sources close to Microsoft are reportedly saying that the company is simply prepared to wait out Yahoo boss Jerry Yang.

While those statements -- that Microsoft won't raise its bid or launch an immediate proxy fight -- could be seen as posturing, many people close to the deal believe that the jig is up, a fact apparent to all but Yahoo and Yang.

According to Kara Swisher at All Things Digital, many of Yahoo's investors now know what Yang seems reluctant to admit -- that the company's road show to build excitement about Yahoo's future simply failed to make its case.

"[t]he bottom line from several of [Yahoo's institutional investors is] if Yahoo does not wise up and start seriously kibitzing with Microsoft over its takeover bid sooner than later, then some investors have signaled to the company's top execs that they would likely back Microsoft if a proxy fight came to pass," Swisher wrote.

Few believe that a proxy fight is likely because it would only help rival Google (the reason for the bid in the first place). However, the two-month dance between both companies has certainly had its share of unexpected turns. Just last week, silence surrounding both companies led many to report that a deal was imminent. Now, the silence looks a lot more like the beginning of prolonged trench warfare.