Apple's annual developer conference in San Francisco.
Microsoft Walking Away from Yahoo Acquisition
Negotiations continued, opening the possibility for a hostile takeover from Microsoft. In the end, however, it appears Microsoft is walking away from the negotiations and will not pursue a hostile takeover.
In a letter from Microsoft's Steve Ballmer to Yahoo's Jerry Yang, Ballmer detailed his reasons. In the end, Yahoo was insisting on a $53 billion price ($37/share), while Microsoft's offer topped out at $47.5 billion ($33/share).
"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.Another key factor included Yahoo's recent outsourcing of advertising services to Google, which could introduce regulatory hurdles in pursuing an acquisition.