On the eve of when Yahoo is rumored to reject the Microsoft acquisition bid, it appears that Microsoft investors don’t really see much value in Yahoo.

Yahoo is also rumored to be looking to restart merger talks with Time Warner subsidiary AOL. Yahoo has suffered eight straight quarters of profit decline, yet Yahoo co-founder Jerry Yang, by rejecting Microsoft’s bid, seems confident that he can raise the share price by over 60 percent by staying independent.

Microsoft stock has fallen about 13% since the bid was made, trimming $38 billion in shareholder value. I don’t think it’s much of a coincidence that Microsoft has lost nearly the full amount of its Yahoo bid in shareholder value. I think this is a sign from shareholders that they don’t think Microsoft is a good home for Yahoo.

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