Yahoo has ended all talks with Microsoft, instead the search engine has announced an advertising partnership with Google:
Yahoo shareholders took the news badly, pushing the company's shares down more than 10% by the end of trading. The offer had boosted the stock by nearly 60% over its value at the time Microsoft had originally announced its bid on Feb. 1. Shares of Yahoo closed trading down $2.63 at $23.52 on Thursday.
Shares of Microsoft took the opposite track, rising over 4% to close at $28.24.
"We've always thought this deal was a bad idea to begin with," said McAdams Wright Ragen analyst Sid Parakh, who covers Microsoft.
In a statement, Yahoo said that it has held "numerous meetings and conversations with Microsoft regarding a number of transaction alternatives." At a June 8 meeting that included several board members of Yahoo, the company said Microsoft made clear that it was not interested in a full buyout.
In addition, Yahoo said its board determined that an alternative transaction, such as a sale only of its search business to Microsoft, would not be in its best interests.
Yahoo's stock closed 10.13% lower today.
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Re: Yahoo stops all talks with Microsoft by Anonymous on Friday, June 13 2008 @ 02:32:10 CEST
Should have cashed the check when they had the chance!
Resounding comments from the world at large indicated that MS would be stupid to buy Yahoo. In 10 years Yahoo will be as forgotten as Silicon Graphics :) And MS won't be out a few billion...