Microsoft withdraws Yahoo bid

Posted by Cory Bergman on May 4, 2008

After raising its bid to $33 a share and seeing no response, Microsoft yanked its bid and is abandoning efforts to acquire Yahoo. “After careful consideration, we believe the economics demanded by Yahoo do not make sense for us,” said CEO Steve Ballmer. Yahoo, meanwhile, is claiming victory. “This process has underscored our unique and valuable strategic position,” CEO Jerry Yang said. Ballmer says that Yahoo’s board wanted $38 a share, which is double Yahoo’s stock price when Microsoft first made an offer.

Nobody will be buying them at that price.

Update: Yahoo’s stock price loses 15% right off the bat

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