Microsoft Corp. has decided to withdraw its $42.3 billion bid on Saturday to buy Yahoo Inc. This came after an unsuccessful last try to negotiate a mutually acceptable sale price.
Microsoft was willing to pay as much as $47.5 billion, or $33 per share, but Yahoo’s board wanted at least $53 billion, or $37 per share. Microsoft could make a new bid later this year if Yahoo doesn’t recover after having more than two years of financial problems. Analysts feel that if things don’t change for Yahoo Inc. soon, their stock would decrease into the mid-teens and that would make it difficult for the company to turn down any future offers. Yahoo Inc. is considering an advertising partnership with Google and a merger with the Internet operations of Time Warner Inc.
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