| Microsoft abandons acquisition, Yahoos shares
fall
Microsoft
has announced that it has dropped its nearly three month long pursuit
of Yahoo, thereby ending a historic acquisition attempt. The failure to
acquire Yahoo puts Microsoft back to square one against its effort boost
its online business to compete with Google.
In a statement issued by the software giant, Microsoft
CEO Steve Ballmer said that the companys goal in pursuing a combination
with Yahoo was to provide greater choice and innovation in the marketplace
and create real value for the stockholders and employees of both companies.
In response, Yahoo issued a statement maintaining that
Microsofts offer was too low, and saying that many Yahoo shareholders
agreed with its position. In a statement, Jerry Yang, CEO, Yahoo said
that with the distraction of Microsofts unsolicited proposal now
behind it, Yahoo could continue with the most important transition in
its history. Microsoft had earlier raised its initial bid by about $5
billion, but that didnt convince Yahoo.
The collapse of the deal was clearly visible, as Yahoos
shares fell by approximately 15% in New York, erasing a big chunk of the
50% gain made since the takeover approach. In Frankfurt, Yahoos
shares ended down 12.59% at 15.83 euros.
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