Ballmer Walks, Yang Talks, No Yahoo Buy
Microsoft announced it will abandon its attempt to acquire Yahoo after negotiations failed to hammer out an agreeable price per share.
For now, the biggest Internet deal ever is the biggest washout ever. Despite fervent negotiations and a threat to launch a hostile takeover of Yahoo, Microsoft CEO Steve Ballmer decided against further efforts to bring about a Yahoo acquisition.
“Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo has not moved toward accepting our offer,” Ballmer said on Friday in a letter to his Yahoo counterpart, Jerry Yang.
“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.”
Pundits around the Internet predicted a severe drop in Yahoo’s shares once Wall Street opens today. In after hours trading following the Microsoft announcement, Yahoo’s stock price fell by more than 20 percent, leaving it set for a rough open this morning.
Yang said on Yahoo’s corporate blog everything’s going to be alright.