Microsoft announced its plan to withdraw its proposal to acquire Yahoo! today.
This is a strange, and somewhat unexpected turn of events in the ongoing Microhoo saga.
In a letter, Microsoft CEO Steve Ballmer stated:
“We continue to believe that our proposed acquisition made sense for
Microsoft, Yahoo! and the market as a whole. Our goal in pursuing a
combination with Yahoo! was to provide greater choice and innovation in the
marketplace and create real value for our respective stockholders and
The reason that Ballmer gave for the withdraw was:
“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.”