Its all over google the internet.
The biggest news in the tech world…Microsoft Withdraws Proposal to Acquire Yahoo!
“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.
Check the full letter of Microsoft to Yahoo! here.
Meanwhile, read Yahoo’s response after the break.
Here’s Yahoo’s reponse to microsoft:
“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.
read the full entry here.
So based from their love letters, it seems that microsoft got pissed with Yahoo partnering with google. They now also realized that they would have to battle with government and business regulations in case the merger takes place.
So, who bumped Microsoft on the head?