Microsoft Pulls Yahoo Bid
May 5, 2008 at 5:07 AM (PT)
MICROSOFT's decision to pull its bid for YAHOO is expected to send the latter's shares tumbling in MONDAY trading.
Early SATURDAY evening, MICROSOFT announced its abandonment of its three-month-long bid to take over YAHOO in a statement from CEO STEVE BALLMER, which explained, "We continue to believe that our proposed acquisition made sense for MICROSOFT, YAHOO, and the market as a whole. Our goal in pursuing a combination with TAHOO was to provide greater choice and innovation in the marketplace and create real value for our respective stockholders and employees."
YAHOO's response was to issue a statement claiming that MICROSOFT's offer was too low and that it is "profitable, growing, and executing well on its strategic plan to capture the large opportunities in the relatively young online advertising market," according to Chairman ROY BOSTOCK.
MICROSOFT announced its intention to buy YAHOO on FEBRUARY 1, and YAHOO's board rejected the offer on FEBRUARY 11th. The bid ended up at about $33 per share, with YAHOO reportedly holding out for $37.