The Wall Street Journal (subscription required) just broke the story that Yahoo’s board plans to reject Microsoft $44.6 billion offer, citing our favorite source: “a person familiar with the situation.” Apparently, $31 per share “massively undervalues” Yahoo, according to the same source. The logic is that the offer doesn’t take into account risks Yahoo would go through (that is, if regulators overturned the deal) by entering into an agreement with Microsoft.

Accordingly, Yahoo’s board will send a letter to Microsoft on Monday explaining the situation. This article comes just hours after another WSJ article quotes several investment bankers who basically say that “investors have lost confidence in Yahoo management’s ability to reverse the company’s fortunes on its own.” Nevertheless, here’s Yahoo’s reasoning for rejecting the offer: