Monday, May 5, 2008

Microsoft Pulls Yahoo! Proposal

Microsoft said Saturday that it has withdrawn its proposal to acquire Yahoo!, saying that the firm believes the price being sough by Yahoo does not make sense for the firm. In a letter released by Microsoft, Microsoft CEO Steve Ballmer told Yahoo CEO Jerry Yang that the firm would not make a direct offer to Yahoo shareholders, because of the protracted proxy contest, and believe that Yahoo would take steps to make Yahoo! "undisirable as an acquisition for Microsoft."