Microsoft withdraws bid to acquire Yahoo

Microsoft has abandoned its three-month old bid to buy Yahoo after the two failed to agree on acceptable price. Microsoft had earlier offered USD 47.5 billion which translated into USD 33 per share but Yahoo wanted $57 billion or $37 a share.
Microsoft announced its decision to withdraw after talks between its Chief Executive Steven A Ballmer and Yahoo co-founder Jerry Yang in Seattle last morning failed to produce an agreement. Microsoft had made an unsolicited bid to buy Yahoo so as to compete with Google search engine.
Ballmer in a letter to Yang pointed out that Microsoft had already raised its bid by about $5 billion and despite its best efforts, Yahoo has not "moved towards 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," said Ballmer.
"Our discussions with you have led us to conclude that, in the interim, you would take steps that would make Yahoo undesirable as an acquisition for Microsoft," he wrote.
"We continue to believe that our proposed acquisition made sense for Microsoft, Yahoo and the market as a whole," Ballmer said in the letter posted on the Microsoft website.
No immediate comment was available from Yahoo.
In a statement, Ballmer expressed confidence that Microsoft move towards its goal to pursue its online efforts on its own.