Microsoft withdraws Yahoo bid

Microsoft walked away from its bid to buy Yahoo on Saturday after the Internet company turned down its offer to raise the price by $5 billion to $47.5 billion. Microsoft’s offer was for $33 a share but Yahoo would not lower its demand below $37, Microsoft chief executive Steve Ballmer said. The software company initially bid $31 per share for Yahoo more than three months ago.

New Version of Hotmail

Microsoft Corp today announced the global launch of Windows Live Hotmail, a new version of its popular e-mail service, in 36 languages.

"The new service has been built to be a vast improvement over the previous Hotmail, having incorporated inputs from more than 20 million 'beta' testers," a Microsoft release said.

The new Live Hotmail will deliver safer, more powerful and productive e-mail experience with flexible access via the web, on a mobile phone or with an e-mail client, it said.

Later this month, Live Hotmail subscribers will be able to access their Windows Live Hotmail email and contacts for free, using Microsoft Office Outlook 2003 or Office Outlook 2007 via the new Microsoft Office Outlook Connector Beta.

"With Windows Live Hotmail, you can preview your email, drag and drop emails and personalise your inbox"

Is Microsoft looking to buy Yahoo?

New York: Microsoft Corp is resuming its pursuit of search engine operator Yahoo Inc that could help it better compete with Web search leader Google Inc, published reports said on Friday.

The New York Post reported Friday that Microsoft has asked Yahoo to enter formal negotiations for an acquisition that could be worth $50 billion. Yahoo's market capitalization was about $38 billion on Thursday.

The Wall Street Journal said executives of the two companies are looking at a merger or some other kind of matchup and said the talks appear to be early-stage discussions. It said the companies explored the idea of combining last year but the talks led nowhere. The newspaper reports each cited unidentified people familiar with the situation.

The Post story said Microsoft and Yahoo have held informal talks over the years and said Microsoft's latest approach to Yahoo signals increased urgency.

Earlier this week, Yahoo said it would buy 80 per cent of advertising exchange Right Media for $680 million, increasing its stake in that company to full control.