Microsoft withdraws bid on Yahoo
May 05, 08 by Cesar
After 3 months Microsoft withdraws its bid on Yahoo because the two sides doesn’t have an agreement for the price. Microsoft wanted this deal to ba able to compete with Google.
Last week, Microsoft CEO Steve Ballmer has raised his offer from $29 to $33 per share on Yahoo. That is in total from $44.6bn to $47.5bn. But Yahoo had insisted for the total price of $53bn or $37 per share.
According Reuters the analysts believes that Yahoo’s shares will be decreased from closing price of $28.67 to around $20. The share price before Microsoft offer a bid was $19.18.
A part of the letter from Microsoft CEO Steven Ballmer to Yahoo chief executive Jerry Yang:
Accordingly, your apparent plan to pursue such an arrangement in the event of a proxy contest or exchange offer leads me to the firm decision not to pursue such a path. Instead, I hereby formally withdraw Microsoft’s proposal to acquire Yahoo!.
Resources:
- Microsoft letter withdrawing Yahoo bid on Reuters
- Investors eye Yahoo’s alternatives to Microsoft on Reuters
- Microsoft walks away from Yahoo on BBC News
01 • Cesar Says: 05.05.08 at 9:04 am
Welcome to everyone. This is my first post and comment.