Microsoft withdraws from Yahoo deal

Microsoft CEO Steve Ballmer announced yesterday that Microsoft had withdrawn its proposal to acquire Yahoo.

Microsoft CEO Steve Ballmer announced yesterday that Microsoft had withdrawn its proposal to acquire Yahoo.

In a letter to the company made public yesterday Ballmer said the despite the acquisition making good economic sense for Microsoft, Yahoo had declined the offer.

“We continue to believe that our proposed acquisition made sense for Microsoft, Yahoo and the market as a whole,” says Ballmer. “Despite our best efforts, including raising our bid by roughly $US5 billion ($5.37 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.”

The letter to Yahoo CEO Jerry Yang continued on to say that Microsoft had upped their offer to Yahoo by $33 per share raising a further five billion of value to share holders at a 70% margin over the price that Yahoo stock closed at on Jan 31.

Ballmer continued: “Yet it has proven insufficient, as your final position insisted on Microsoft paying yet another five million dollars or more, or at least another four dollars per share above our 33 dollars offer. It is clear to me that it is not sensible for Microsoft to take our offer directly to your shareholders.”

Source: The Australian

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