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Summary:

Microsoft has decided to walk away from its bid for Yahoo (NSDQ: YHOO). Said Microsoft CEO Steve Ballmer in a statement: “We continue to bel…

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

  1. Cheers the world is at peace again. Hope MSFT will use the $50 billion to fund and acquire innovative companies rather than Yahoo! which exists only because it started when no one else was there to compete. Yahoo! is overrated. It is technologically lacking and has not really attracted all that talent it claims for the last 4 years. The best of Yahooligans left Yahoo 3-4 years ago.
    For Yang's ego he possibly made the biggest mistake of his life.

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  2. A good decision by MS. They can focus in a better manner now on their own development to create something good for their loyal users.

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