Microsoft Corporation believes it has made a fair offer to acquire Yahoo, its chief operating officer said on Friday.

"We believe we have made a very fair offer to Yahoo. Now it is up to the Yahoo board to decide," Kevin Turner told reporters at a news conference in Mumbai to launch strategic initiatives with India's HCL Infosystems.

"The bid is a tactic and a strategy towards becoming a world class digital advertising company. With or without the acquisition we are committed to becoming a world class digital advertising company," he said.

Microsoft had threatened last week to launch a hostile bid for Yahoo and could lower its offer of $42.4 billion in about three weeks if it does not get a deal.

The New York Times reported this week News Corporation was in talks to join Microsoft's bid for the Web pioneer.

Yahoo announced on Wednesday a test to outsource Web search advertising to Google, which sources say is part of a three-way alliance that would combine Yahoo with Time Warner's AOL instead of Microsoft.-Reuters