Yahoo.. Microsoft bid ends

Software great Microsoft said on Saturday that it had pulled its offer for Yahoo after a higher offer failed to move the internet company . This is a big blow for Microsoft as this is one time in that they have been so publicly rebuked. Microsoft had raised its bid for Yahoo to $33 per share as negotiations between the firms intensified over the weekend, but the increase had failed to win over those who hoped for an even higher bid. Yahoo had consistently rejected and earlier $31-a-share offer, with many shareholders indicating they will sell only for $35 a share. A deadline set by Microsoft for Yahoo to accept its $41.9-dollar passed April 26 with no further comment from Yahoo, had originally dismissed the bid as undervaluing the company, even though it represented a premium of 62 percent on the company's pre-offer share price.

so what are the effects that this incident have on Microsoft?
Firstly Microsoft had thought that by merging with yahoo, they could take on the Google challenge head on. but now they have to rely on their own expertise. this can actually be a blessing in disguise. haven't we read lots of stories where mergers have done nothing but bring the company down? with the different work cultures at both yahoo and MS, it would've presented a nightmarish situation for MS. Now they have to prove their supremacy with their own might. Let us wait and see how the Giant does this