Microsoft has given up the idea of trying to buy Yahoo after its latest, increased bid was rejected.
Microsoft, keen to team up with Yahoo in order to become a viable competitor to Google when it comes to the world of online advertising, has now given up the idea of buying the company.
Microsoft made an original, unsolicited offer to Yahoo of $44.6 billion. Yahoo rejected the offer, saying that it undervalued the internet giant. Microsoft then upped the ante with an offer of $47.5 billion.
Unable to agree on an acceptable price, Microsoft have now formally withdrawn their offer. It is understood that Yahoo were asking in the region of $53 billion and were unwilling to budge on the price.
The online advertising market was worth around $40 billion in 2007 but is anticipated to double in the next two years to $10 billion and Microsoft, naturally, would like a (large) share.
After all, poor old Bill has slipped to being only the second richest man in the known galaxy after his personal fortune only rose by about 10% last year and he obviously needs the extra funds.