Money talks. And Bill Miller, a star stock picker, wants to hear a little more from Microsoft, urging the company to raise its $42 billion bid for Yahoo, according to a Reuters article.

Miller’s remarks have particular weight in this case since his employer, Legg Mason, also happens to be Yahoo’s second-largest investor.  In a quarterly letter to investors, Miller put the value of Yahoo near $40 per share, compared with Microsoft’s original offer of $31 per share.

Others, of course, have also recommended Microsoft bring a little more dough to the table.

But Yahoo may not want to be too greedy. Even Miller says it “will be hard for (Yahoo) to come up with alternatives that deliver more value than (Microsoft) will ultimately be willing to pay.”

What’s more,  Google may not come to Yahoo’s rescue. The Wall Street Journal, quoting people familiar with the matter, says that Google’s “enthusiasm has waned in recent days for a potential advertising tie-up that could help Yahoo Inc. try to thwart Microsoft Corp.’s unsolicited takeover offer.”

Whatever company — if any — gets Yahoo, they’ll be taking on a few less staffers than before. Yahoo, as expected, has begun carrying out layoffs of up to 1,000 employees.

Keep an eye on: 

• Film and television writers return to work today after a decisive vote to lift their three-month strike against major studios (Reuters)
• The New York Times Co  has nominated two new candidates for its board ahead of an attempt by a dissident investor group to add four directors to its slate (Reuters)
• Adult entertainment publisher Playboy posted a net loss and said it expects magazine advertising revenue to fall 30 percent in the first quarter (Reuters)