Microsoft Withdraws Yahoo! Bid

Microsoft has finally admitted defeat in its takeover bid for Yahoo! after shareholders rejected an offer of $33 per share.

Microsoft has taken its decision after three months of increasingly fraught negotiations. One Microsoft source is alleged to have said that Yahoo! CEO Jerry Yang had unrealistic expectations about the transition of control. Yahoo! also thought that the $33 per share offer was greatly undervaluing the business - the board were holding out for a $37 per share deal.

The decision is expected to wipe billions of dollars off the value of Yahoo! share come the start of trading on Monday.

Microsoft is battling web giant Google for a larger share of the rapidly expanding online advertising market.

No comments: