Microsoft has waited for months for Yahoo to accept its unsolicited takeover bid, but it now appears that the software giant will withdraw its offer and prepare for a hostile takeover if no deal is reached over the weekend.

"As outlined in our recent letter to the Yahoo board, unless we made progress with Yahoo towards an agreement by this weekend, we will reconsider our alternatives," Chris Liddell, Microsoft’s chief financial officer, said on a conference call on Thursday.

One of those alternatives includes going to Yahoo shareholders to work out a deal, Liddell said. Earlier this week, Microsoft chief Steven Ballmer threatened to pull the offer off the table if Yahoo does not begin negotiating.

Yahoo has continuously asked for a sweeter deal, and despite releasing higher first quarter numbers than expected earlier this week, Microsoft officials said they will not increase their initial offer.

The two sides have sat down a few times already, but nothing came of the meetings, according to reports.