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Microsoft walks always from Yahoo!; offer could have reached $33 per share
By Lisa Kerner
Charlotte, N.C., May 5 - Microsoft Corp. withdrew its proposal to acquire Yahoo! Inc., even though Microsoft chief executive officer Steve Ballmer said the proposed acquisition still makes sense for his company.
"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 said in a company news release.
"Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer," Ballmer added.
Microsoft, which had been courting Yahoo! for the past three months, was willing to raise its bid to $33 per share, Ballmer said in a letter to Yahoo! CEO Jerry Yang.
According to Ballmer, Yahoo! wanted at least another $4 per share, or another $5 billion.
The Redwood, Wash., software company originally offered to acquire Yahoo! for $31 per share, or some $44.6 billion, it was previously reported.
Yahoo! chairman Roy Bostock said in a statement that his company has been steadfast in its belief that Microsoft's offer undervalued Yahoo!
In April, Yahoo! announced a limited test of Google Inc.'s AdSense for Search service.
At the time, Microsoft said that "any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google's hands," making the market far less competitive.
Ballmer, in his letter to Yang, noted that a Yahoo!/Google arrangement would make Yahoo! less attractive to Microsoft.
Yahoo! provides internet services. The company is based in Sunnyvale, Calif.
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