Microsoft Finally Withdraws Yahoo Bid

Putting an end to the 3 month suspense, Microsoft has officially withdrawn its Yahoo bid. In a last minute effort, Microsoft CEO Steve Ballmer has even raised the offer from $29 to $33 per share. But Yahoo demanded that it would accept $37 per share.

Everybody thought that Microsoft would take up Yahoo at any cost. Of course, this might be the only way to challenge Google’s dominance over the Internet Search Engine market. But on the contrary to that belief, Ballmer simply pulled off the deal saying “not sensible”.

Do you know what the price of Yahoo share was 3 months ago? It was just $19.18. But now, Yahoo demands double its share. Even the supporters of the merger feel that this is purely a high price for Yahoo.

Just after the official announcement of abandoning the bid, analysts believed that Yahoo shares will tumble like anything from its previous close of $28.67. At the time of writing this article, Yahoo shares were traded at the price of $24. 22. No doubt, in the coming days, many of us would observe Yahoo share at a throw away price.

Personally, I feel that Yahoo has made a big mistake not accepting the most lucrative offer. The proposed acquisition would no doubt benefit Microsoft & Yahoo but at the same time it will benefit the search engine market as a whole.

It is now up to Yahoo’s chief executive Mr Yang, who should answer his shareholders?

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