Microsoft refused to buy Yahoo

Microsoft Corporation abandoned the intention to buy Yahoo Internet company, since the parties could not come to an agreement on the cost of the transaction.

Microsoft's computer giant’s offer about the purchase of Yahoo was made three months ago. The transaction amount at that time amounted to $ 44.6 billion, but the Yahoo management considered that Microsoft underestimates the cost of a popular Internet company, the Air Force reports.

Now, the head of Microsoft, Steve Balmer in a letter to Yahoo head, Jerry Yang, officially announced the abandonment of intentions to buy an Internet company. According to Balmer, his corporation was ready to pay $ 47.5 billion for Yahoo - that is, $ 33 per share. In Yahoo, according to him, they insisted on the amount of at least 53 billion dollars.

Microsoft wanted to purchase Yahoo to make the proper competition of Google, which dominates the Internet advertising market.

In 2007, the volume of this market amounted to $ 40 billion, and by 2010 it is expected to double.

When Microsoft offered the Yahoo deal in February, the corporation stated that "together Microsoft and Yahoo could offer the possibility of competitive choice, as well as more compliance with consumer and partners' requirements."

On Friday, Microsoft shares almost did not change, amounting to $ 29.24, while Yahoo shares increased by $ 1.85 to $ 26.67 amid the expectations that Microsoft will be able to offer a more significant amount for Yahoo.