Microsoft Scraps Multi Billion-Dollar Bid To Buy Yahoo

Computer giant Microsoft has dropped its $42.3billion offer to buy the Internet search engine Yahoo.

Negotiations ended yesterday (May 3rd) after neither company could agree on an acceptable price for the company.

In a letter to Yahoo’s co-founder Jerry Yang, Microsoft Chief Executive Steve Ballmer said the proposed deal “is not to be.”

According to the letter, Microsoft was willing to pay $47.5billion for the search engine, or $33billion per share.

However, the offer was still below Yahoo’s target of at least $53billion outright, or $37billion dollar per share.

Microsoft’s plans to buy Yahoo first emerged in February this year, when details of their initial offer were made public.

At one point it looked like the computer software manufacturer were considering a joint bid with Rupert Murdoch’s New Corporation in order to secure the deal.

The acquisition of Yahoo would have given Microsoft the ability to turn Yahoo into a legitimate rival to market-leader Google.