Microsoft, Yahoo Deal Falls Through

Now, Microsoft is not Interested in Yahoo
As the air around Microsoft’s bid to acquire Yahoo was getting hotter everyday during the last three months, yesterday Microsoft decided to step aside and announced it has withdrawn its proposal. The software major had even revised its offer by $5 billion to pay $47.5 billion for this buyout.

“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 Steve Ballmer, chief executive officer of Microsoft.

Now Microsoft wants to build its scale through organic growth and partnerships.

Expressing Microsoft’s decision to withdraw, yesterday CEO Steve Ballmer wrote a formal letter to Yahoo! CEO Jerry Yang.