On May 3, 2008, Microsoft withdrew its proposal to acquire Yahoo.
In a letter to Jerry Yang, CEO and Chief of Yahoo, and a press release on the same day, Microsoft announced the withdrawal its offer to acquire Yahoo.
“Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal,” said Steve Ballmer, CEO of Microsoft.
In the letter to Yang, Balmer also raises concerns over Yahoo’s plans to outsource internet search terms for advertising to Google, and why it would make an acquisition of Yahoo ‘undesirable’ for Microsoft.