Mark Androvich
17:36 (BST)
04/05/2008
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Microsoft ends Yahoo takeover attempt
Microsoft has ended its attempt to acquire Yahoo after its offer of USD 33 per share - a total value of USD 47.5 billion - was rejected.
According to a report from The Times, Yahoo co-founder Jerry Yang insisted that his company was worth USD 38 per share.
"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," Microsoft CEO Steve Ballmer wrote in a letter to Yang following the unsuccessful negotiations.
In February, Microsoft announced its offer to buy Yahoo for USD 31 per share - a 62 per cent premium over the stock's January 31 closing price.
After Yahoo rejected the initial offer, Microsoft threatened to launch a proxy fight. Yahoo, meanwhile, sought interest from other media companies in an attempt to thwart a takeover.
Yahoo's stock closed the week at USD 28.67 per share. Ballmer said that Microsoft would be looking at other business moves.
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