"Microsoft Corp. (NASDAQ: MSFT) today announced that it has withdrawn its proposal to acquire Yahoo! Inc. (NASDAQ: YHOO). "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 Yahoo! was to provide greater choice and innovation in the marketplace and create real value for our respective stockholders and employees," said Steve Ballmer, chief executive officer of Microsoft. "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."
What a dramatic three months it's been. The press release
continues with a very detailed letter from Ballmer explaining why Microsoft's offering of $5 billion
on top of the initial bid wasn't enough for Yahoo!, and why the proxy contest never too place. No Microhoo!, I guess. Now, I wonder if Goohoo! is on the cards.Update:
Yahoo! shares fell 22% in pre-market trading. NYSE opens in under an hour.