Microsoft Withdraws From Yahoo! Acquisition

It’s over, folks. Microsoft has withdrawn its bid to buy Yahoo!, ending one of the most closely-watched corporate acquisitions in recent history.

Here’s what Microsoft CEO Steve Ballmer announced:

“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,” said Ballmer.

Both companies stood to benefit from the deal. Back in January, Yahoo! laid off a significant number of its employees while Microsoft stock has stagnated. The move would have united their fronts against a common adversary: Google. With the acquisition gone, one has to wonder what the dominant search engine’s executives are thinking. After all, the potential threat is over.

Source: Wikipedia, Press Release, New York Times

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