Microsoft Withdraws Offer For Yahoo

Microsoft has decided to walk away from its bid for Yahoo (NSDQ: YHOO). Said Microsoft CEO Steve Ballmer in a statement: “We continue to believe that our proposed acquisition made sense for Microsoft, Yahoo! and the market as a whole. Our goal in pursuing a combination with Yahoo! was to provide greater choice and innovation in the marketplace and create real value for our respective stockholders and employees. Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal.” He added that Microsoft has a strong team and can survive without Yahoo. According to reports, Microsoft and Yahoo had been stuck at $33 and $37 respectively and from there the two sides wouldn’t budge. The withdrawal comes almost exactly three months after Microsoft launched its initial $44.6 billion, $31 per share bid early on February 1. The breakdown happened today in talks in Seattle between Ballmer, Yang, Yahoo’s other co-founder, David Filo, and Kevin Johnson of Microsoft, according to the NYTimes. At the meeting, Ballmer increased Microsoft’s offer to $33 a share, but Yang said Yahoo would not sell for less than $37.
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http://www.nytimes.com/2008/05/04/technology/04soft.html?_r=1&hp&oref=slogin