Microsoft withdraw its offer to buy Yahoo

Microsoft withdraw its offer to buy Yahoo

Microsoft has withdrew its proposal to acquire Yahoo on Saturday. Microsoft CEO Stephen Ballmer said in a letter to Yahoo that Microsoft withdrew its proposal to acquire Yahoo.

Stephen Ballmer said in his letter posted in Microsoft website, “We continue to believe that our proposed acquisition made sense for Microsoft, Yahoo & the market as a whole. Despite our best efforts, including raising our bid by roughly five billion dollars, Yahoo has not moved toward accepting our offer”.

Ballmer said in his statement, “After careful consideration, we believe the economics demanded by Yahoo do not make sense for us & it is in the best interests of Microsoft stockholders, employees & other stakeholders to withdraw our proposal”.

Ballmer said that in conversations earlier in the week, “we conveyed our willingness to raise our offer to 33 dollars per share, reflecting again our belief in this collective opportunity. This increase would have added approximately another five billion dollars of value to your shareholders, compared to the current value of our initial offer. It also would have reflected a premium of over 70 percent compared to the price at which your stock closed on January 31″.

Ballmer said, “Yet it has proven insufficient, as your final position insisted on Microsoft paying yet another five billion dollars or more, or at least another four dollars per share above our 33 dollars offer.

Ballmer wrote in letter, “It is clear to me that it is not sensible for Microsoft to take our offer directly to your shareholders”.

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