Microsoft has decided to walk away from its bid for Yahoo NSDQ: YHOO. Said Microsoft CEO Steve Ballmer in a statement: “We continue to believe that our proposed acquisition made sense for Microsoft, Yahoo and the market as a whole. 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. Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal.”
I wonder if Yahoo will plummet or surge in after hours trading. Ballmer imho will try pull a ‘Larry Ellison’ and swoop in eventually buying Yahoo at a steep discount – similar to the Oracle/BEA buyout debacle…remember there is around $10+ of ‘buyout’ inflation value baked into their current pricing.
This battle is far from over in my opinion – and honestly after reading Ballmers withdrawal letter myself I don’t blame him one bit for letting Yahoo’s executive egos deflate a bit.
Microsoft Withdraws Offer For Yahoo – washingtonpost.com