Microsoft Dumps Bid for Yahoo!

By Greg McNevin

May 5, 2008: On Saturday Microsoft publicly withdrew its bid for Yahoo!, ending three months of intense speculation.

According to the New York Times, Microsoft CEO met with Yahoo! co-founder Jerry Yang on Saturday to discuss the takeover, which has been edging closer to hostility for the past fortnight.

Microsoft reportedly upped its original unsolicited bid to US$33 (AU$) a share, however, Yang turned this down saying that US$37 (AU$) is the minimum Yahoo! would accept.

In March Microsoft made the surprise announcement that it was pursuing Yahoo! in a bid to more effectively compete with search juggernaut Google.

Back then the firm claimed Yahoo! was a key part of its battle plan for search, however, now that it has abandoned the deal it is moving away from this claim, with Baller stating that it would have sped up the firm’s strategy, rather than be an integral part of it.

“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,” said Ballmer in a statement. “While Yahoo would have accelerated our strategy, I am confident that we can continue to move forward toward our goals.”

Due to this re-framing, some commentators are questioning the nature of the deal in the first place, not to mention Microsoft’s resolve. That said though, a sigh of relief does appear to have passed through the industry.

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