With respect to an acquisition of Yahoo!’s search business alone that Microsoft had proposed, Yahoo!’s Board of Directors has determined, after careful evaluation, that such a transaction would not be consistent with the company’s view of the converging search and display marketplaces, would leave the company without an independent search business that it views as critical to its strategic future and would not be in the best interests of Yahoo! stockholders.
Part of the reason the talks were called off was because Microsoft was unwilling to pay $33/share anymore: “Microsoft representatives stated unequivocally that Microsoft is not interested in pursuing an acquisition of all of Yahoo!, even at the price range it had previously suggested” (Ahem, $34.375, Mr. Icahn?)
Microsoft has also issued a statement.
paidContent.org reports that Yahoo shares are down 13%—but after East Coast market close, we can expect a big announcement.
TechCrunch reports that Yahoo and Google will finally announce their search deal today at 1:30 PST (in about 15 minutes) after an enthused response to a short test two months ago. Stay tuned to find out if it pans out! (Edited at 2:10 PST: no news yet on Google’s or Yahoo’s press pages…)
Think the two are related?
Andy’s Update: Microsoft just loves to have the last word.