Saturday was the last day when Microsoft announced to withdraw its $46billion buyout offer to Yahoo Inc and hence ended months long saga between two internet pioneers. Microsoft further announced that it had no intention to make an unfriendly offer to Yahoo Inc.
In January when the offer was made it valued around $31 per share and on this Friday Yahoo stock ended at $28.67 per share.According to Microsoft CEO Steve Ballmer ‘Yahoo’s demand was illogical and beyond their understanding.
Ballmer narrated in a letter to Yahoo Chief Executive Jerry Yang Yahoo asked $5 billion add in value or minimum an added $4 per share and it led the deal at $37 per share.
Ballmer further described that it wouldn’t be a sensible act if that offer is openly taken to shareholders.
Ballmer also added that a partnership between Yahoo and “the dominant search contributor” as he called to Google would develop a merger that is desirable for a lot of reasons.
On the other hand Yahoo’s officials showed their pleasure with the end of that offer made by Microsoft.Yang in a statement named that Microsoft’s offer a commotion and told that now Yahoo will put all its energies “on performing the most significant change in our record so that we can make the most of our potential.”
While is seeking to develop a new web ad planning that will help it to compete in new internet ad scenario and to enhance its market share in this lucrative Web ad market. However,what will be that strategy without Yahoo and will it prove successful or not, only coming time can tell .But it is also a fact that Microsoft the software giant has been ruling for a long, long time but today Microsoft is facing the reality that its no more a ruler and Google is the new king of net search options.
According to Mr. Ballmer his team is talented enough to develop some novel sort of services that will prove very helpful to enhance our net market share and there is no doubt about it that we have the ability to achieve that set goals.
Many experts were of the view that the deal would be finalized between the two as they both couldn’t cope with Google separately and only their merger could pave a better way to challenge the authority of Google and took some share from present Google’s lion share.
On Jan 31, 2008, a public offer was made by Microsoft to Yahoo when the later showed weak quarterly sale and a dejected gesture for 2008.One must remember that Yahoo’s recent quarter sales were also very disappointed.
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