Microsoft withdraws proposal to acquire Yahoo!

Microsoft withdraws proposal to acquire Yahoo!

Microsoft decided that Yahoo! isn't worth the asking price, andwithdrew its offer.

According to Microsoft CEO Steve Ballmer, the revised offer reflected a premium of over 70% compared to the closing price of Yahoo! stock on January 31st.

He also pointed out if Yahoo! pursued a plan to outsource key paid Internet search terms to Google, it would effectively enable Google to set prices for key search terms on both Google and Yahoo! platforms, increase prices charged to advertisers on Yahoo!, and would raise regulatory and legal problems that Microsoft would not want to inherit.

Yahoo! chairman Roy Bostock responded by saying that Microsoft's offer undervalued Yahoo!, which is profitable, growing, and executing well on its strategic plan to capture the large opportunities in the relatively young online advertising market.

Co-founder & CEO Jerry Yang added: "With the distraction of Microsoft's unsolicited proposal now behind us, we will be able to focus all of our energies on executing the most important transition in our history so that we can maximise our potential to the benefit of our shareholders, employees, partners and users."

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