Yahoo decided Saturday to reject Microsoft’s latest proposal of acquiring the company’s search advertising business. The offer, which would have split Yahoo between Microsoft and Carl Icahn, made the company’s board of directors angry because of the manner in which Microsoft treated Yahoo.

According to Fox business, Yahoo Chairman Roy Bostock said that "It is ludicrous to think that our board could accept such a proposal" and that “while this type of erratic and unpredictable behavior is consistent with what we have come to expect from Microsoft, we will not be bludgeoned into a transaction that is not in the best interests of our stockholders."

The new deal that Microsoft proposed to Yahoo implied the latter selling its search business for $1 billion. Microsoft would have also paid $2.3 billion a year for the following five years. What is more, Microsoft would have also bought 3.9 billion worth of Yahoo shares and would have also paid $2.8 billion of the company’s debts.

Yahoo also rejected a previous deal coming from Microsoft that would have paid $9 billion for the company’s search business and would have brought Yahoo a guaranteed $1 billion a year.

However, Yahoo’s board of directors decided that the company has a better chance of increasing its annual revenue from its deal with Google. Although Google guarantees Yahoo a minimum of only $800 million a year in revenue, Yahoo can also close similar deals with other companies, something that wouldn’t have been possible with Microsoft.

It will be interesting to see what will happen at the stockholders’ meeting in August, since Carl Icahn made no secret of his intentions to replace Yahoo’s management on that occasion.