Consequent to a failure to agree on a mutually acceptable price, the software giant Microsoft Corporation decided not to pursue its bid to acquire Yahoo.
Starting with an intital bid of 44.6 billion Dollors , Microsoft had increased its offer to 47.5 billion Dollars. The initial bid worked out to 31 Dollars/ a share and the subsequent one increased this to 33 Dollars/ a share.
But neither of the prices was acceptable to Yahoo whcih wanted 57 Billion dollars which translates to 37 dollars/a share; this however was not acceptable to Microsoft and hence the decision to withdraw the offer.
Though Yahoo had claimed the moves of Microsoft were distractive in nature and called its employees, partners, investors and shareholders to work for a new transition in history, market analysts feel that the failure of the deal would mean plunging in the share prices of Yahoo and add to the uncertain future of the management.
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