After an initial bid was rejected by the Yahoo board, Microsoft raised its offer to US$33 per share, a total of about $47.5 billion. However, senior Yahoo executives have said that they will not sell for less than $37 a share, despite the expectation that the stock will now drop to the mid-twenties, from its price of $28.67 at the end of last week.
“Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo has not moved toward accepting our offer,” said Microsoft CEO Steve Ballmer. “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."
Yahoo is currently believed to be eyeing a potential partnership with Google to strengthen its market position.
