Over the weekend, Yahoo! told Microsoft that their improved bid for the company was still inadequate. From the Wall Street Journal:
Microsoft Saturday released a letter from Chief Executive Steve Ballmer to Yahoo CEO Jerry Yang saying that Microsoft had said it was willing to raise its offer to $33 a share for Yahoo, but Yahoo demanded at least $4 per share more.
“Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo has not moved toward accepting our offer,” Mr. Ballmer said in a Microsoft press release.
Microsoft thus decided to abandon its offer and Yahoo!’s stock price is feeling the consequence. So rather than accepting the $5 billion sweetner, the stock is losing $6.5 billion in market cap today.
YAAAHOOOOOOOOOUUUUUUOOOOOOOOO!
Sources:
Microsoft Withdraws Yahoo Offer After Attempt to Bridge Gap in Price
Kevin J. Delaney, Matthew Karnitschnig and Robert A. Guth
The Wall Street Journal
Good Morning
Barry Ritholtz
The Big Picture