Microsoft backs off from Yahoo bid
Microsoft finally backs off from its hostile bid to acquire Yahoo. In a letter to Yahoo CEO Jerry Yang on Saturday, Microsoft CEO Steve Ballmer conceded that the latter’s plan to use a poison pill strategy against a hostile takeover bid had led him to conclude that such a bid would not be wise for Microsoft.
Microsoft had withdrawn its $47.5 billion bid to buy Yahoo. The software giant had made an unsolicited bid to acquire the Internet giant for $44.6 billion on February 1, 2008 and made a last-ditch effort on Friday by raising its bid from $31 a Yahoo share to $33 a share. But Yahoo CEO Jerry Yang stuck to a demand for $37 a share, which Microsoft was not ready to pay.
Yahoo chairman Roy Bostock dismissed Microsoft’s withdrawal of its unsolicited acquisition bid, calling it a distraction to his company’s pursuit of a new strategy to shore up internet advertising revenues.