Software giant Microsoft has dropped its three-month-old bid to buy internet firm Yahoo because the two sides cannot agree on an acceptable sale price.
Microsoft chief executive Steve Ballmer formally withdrew the offer in a letter to Yahoo chief executive Jerry Yang.
Mr Ballmer said Microsoft had been willing to pay $47.5bn (Ј24.1bn) - $33 per share.
But he added that Yahoo had insisted Microsoft and Yahoo 'seek allies' ...
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Microsoft must pay $1.4bn to EU ... on at least $53bn. Microsoft's original offer was $44.6bn.
The software giant had wanted to do a deal to be able to compete with Google, which dominates the lucrative market for internet advertising.
This market was worth $40bn in 2007 and is predicted to double to $80bn by 2010.
When Microsoft announced its offer in February it said "together Microsoft and Yahoo can offer a competitive choice while better fulfilling the needs of customers and partners".
Microsoft's shares closed on Friday virtually unchanged at $29.24. Yahoo's shares were $1.85 higher at $28.67 amid expectations of a higher Microsoft offer.
(BBC)
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