Filed under: Microsoft (MSFT), Yahoo! (YHOO)

CNET News reports that Microsoft Corp. (NASDAQ: MSFT) has officially withdrawn its offer to acquire Yahoo! (NASDAQ: YHOO). Reportedly the two sides could not agree on price — Microsoft was willing to go up to $33 a share but Yahoo! wanted $37 — $5 billion more than Microsoft was prepared to spend.

Steve Ballmer also decided against a proxy fight for Yahoo! shareholder support — suggesting that it would be a time consuming and costly process that would give Yahoo! more time to make itself a less desirable acquisition for Microsoft.

Is this really the end of it? I expect Yahoo!’s stock to tumble and Microsoft’s to rise. Yahoo! stock was trading up to $29.70 in the after hours market as of 8pm last night. But I expect the stock to plummet to where it was before Microsoft made its offer — $19 a share.

Continue reading It’s off. Microsoft withdraws its offer for Yahoo — for now

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This entry was posted on Sunday, May 4th, 2008 at 12:14 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.