Alright, so Microsoft has officially backed off from bidding on Yahoo, after a roller coaster of ups and downs, that started with an official offer to buy the company for $44.6 Billion, price that reflected $31 per share, back in February. The generous bid has never made any impression on Yahoo’s management, as the company’s directors has officially decided to turn off Microsofts hostile acquisition, claiming the bid is substantially lower than its real value, and whoever wants to buy them should hit $40 per share, meaning extra $9 to Steve Ballmer’s offer. Still, Microsoft clutched to its original bid (desperately trying to stay a major internet player in the growing online advertisement and searching markets) and considered an hostile takeover, by pursuing Yahoo share holders, but at the end of the day, after taking off their threatening suit, the Redmond’s were willing to raise the bid to $33, which was rejected by Yahoo as well and lead to today’s proposal withdraw announcement.
“Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal,” said Ballmer.
Again, that wasn’t much of a squall to Sunnyvale, as Yahoo’s CEO, Jerry Yang, has apathetically responded:
…”With the distraction of Microsofts unsolicited proposal now behind us, we will be able to focus all of our energies on executing the most important transition in our history so that we can maximize our potential to the benefit of our shareholders, employees, partners and users.”
End of story? I’m not so sure, Temporary cease-fire? definitely yes.
[via Microsoft]
