Microsoft Withdraws Proposal to Acquire Yahoo!

After many failed meetings and Raising Share Prices ,Microsoft has now finally decided to withdraw its proposal to acquire Yahoo.In a letter to Yahoo! CEO Jerry Yang ,Steve Ballmer took out his frustation and disappointment by saying

“I am disappointed that Yahoo! has not moved towards accepting our offer. I first called you with our offer on January 31 because I believed that a combination of our two companies would have created real value for our respective shareholders and would have provided consumers, publishers, and advertisers with greater innovation and choice in the marketplace. Our decision to offer a 62 percent premium at that time reflected the strength of these convictions. ”

 Ballmer also thanked him and Yahoo! for consedering their offer and giving them time.

Microsoft chief executive officer ,Steve Ballmer said :-

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

Ballmer Added:-

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.

                                               We have a talented team in place and a compelling plan to grow our business through innovative new services and strategic transactions with other business partners. While Yahoo! would have accelerated our strategy, I am confident that we can continue to move forward toward our goals

In reply Yahoo’s Roy Bostock, Chairman of Yahoo! said that offer proposed by Microsoft was less and not in the favour of the company and its stockholders.His comment was :-

We remain focused on maximizing shareholder value and pursuing strategic opportunities that position Yahoo! for success and leadership in its markets. From the beginning of this process, our independent board and our management have been steadfast in our belief that Microsoft’s offer undervalued the company and we are pleased that so many of our shareholders joined us in expressing that view.

                                                   Yahoo! is profitable, growing, and executing well on its strategic plan to capture the large opportunities in the relatively young online advertising market. Our solid results for the first quarter of 2008 and increased full year 2008 operating cash flow outlook reflect the progress the company is making.

 

You can read more about the deals on the press releases :-
Microsoft Press Release
Yahoo Press Release