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.

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.