Microsoft Won’t Acquire Yahoo!

To put it in a few other ways:

  • Ballmer backs off, writes to Yang that “clearly a deal in not to be.”
  • Yahoo can stop worrying about Microsoft, and start worrying about shareholder lawsuits. As Om puts it:

    They said no to $31-a-share bid. (Apparently, Microsoft raised it to $33 a share… ) If the stock skids to say $21 a share, the shareholders are going to be might pissed… In other words, at a time when Yahoo, its management and its board of directors need to be focused on rebooting the company, they are going to be distracted by these nagging problems.

  • Of course, if Y! stock falls that low, Microsoft might be back.

I was wrong. I thought that the deal would happen, because it seemed by far the best that Y! shareholders were going to do. I still don’t how Y! stock does anything but plummet next week, and I don’t see how it gets up to Microsoft’s offer price in the forseeable future.

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