(Redmond : Washington) Ucs News — Microsoft Corp.’s pursuit of Yahoo Inc. ended abruptly Saturday when the world’s largest software maker withdrew a sweetened $46 billion offer and said it would not make a hostile bid for the Internet company. Microsoft CEO Steve Ballmer stated “The Microsoft Corporations share holders are better served by aggressively defending our existing software monopolies.”
Microsoft said the breakdown came despite having raised the bid to $33 a share, or $5 billion above what it said was the current value of the offer and a 70% premium compared to its original offer. The offer was valued at $31 a share when it was made in January. Yahoo stock closed Friday at $28.67 a share.
“After careful consideration, we believe the economics demanded by Yahoo (YHOO, Fortune 500) do not make sense for us,” said Microsoft (MSFT, Fortune 500) CEO Steve Ballmer.
Ballmer went on to explain the poor performance of Microsoft’s Windows Vista operating system has been a “Wake up Call” to the firms software engineering staff. “We have an established monopoly but we can’t get our customers to give us more money when ever we feel like it.” said Ballmer.