Microsoft Corp. has withdrawn its 42.3 billion dollar bid to buy Yahoo Inc.
Washington, May 4 : Microsoft Corp. has withdrawn its 42.3 billion dollar bid to buy Yahoo Inc.
The decision to walk away was taken late on Saturday after negotiations between the two on a mutually acceptable sale price collapsed.
Microsoft said that it was willing to pay 47.5 billion dollars, or 33 dollars per share, but Yahoo demanded at least 53 billion dollars, or 37 dollars per share.
"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," Microsoft chief Steve Ballmer said in his letter to Yahoo.
No immediate comment was forthcoming from Sunnyvale-based Yahoo.
Sources, however, said that there is a possibility of Microsoft renewing its bid later this year if Yahoo can't bounce back from its current financial crunch.
Had the deal gone through, Microsoft could have achieved a stronger foothold in its battle with Google, which is rapidly expanding into the software maker's own turf with new Web-based applications.
Yahoo has repeatedly said the company is not averse to a deal with Microsoft at a higher price.
ANI