Software maker says economics demanded by Internet portal operator 'do not make sense.'Microsoft Corp. said Saturday it has withdrawn its proposal to acquire Internet portal Yahoo Inc.
Microsoft said the breakdown of the proposal came despite having raised the bid to $33 a share, or $5 billion above what it said was the current value of the offer.
The offer was originally valued at $44.6 billion, or $31 a share, when it was originally made earlier this year. Yahoo stock closed Friday at $28.67 a share.
In a statement, Microsoft (MSFT, Fortune 500) CEO Steve Ballmer said "After careful consideration, we believe the economics demanded by Yahoo (YHOO, Fortune 500) do not make sense for us."
In a letter to Yahoo CEO Jerry Yang, Ballmer said Yahoo wanted at least another $4 a share, or $5 billion in value, added to the deal.
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News source: CNN