Microsoft's Price Wasn't Right: Yahoo Offer Expires

Talks quietly die after Yahoo demands $35 a share
By Katherine Thompson,  Newser Staff
Posted Apr 27, 2008 4:05 PM CDT
Yahoo CEO Jerry Yang poses for a photo in front of the Yahoo booth at the Consumer Electronics Show in Las Vegas in this Jan. 7, 2008 file photo.    (Associated Press)
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(Newser) – Microsoft may get nasty now that its deadline for a friendly Yahoo purchase expired yesterday. Talks died quietly after Microsoft refused to up its offer from $29.68 a share on Friday; Yahoo execs wanted $35. Microsoft could now press Yahoo, tack back the offer, or deal directly with Yahoo shareholders, the Wall Street Journal reports.

But some shareholders oppose a takeover unless Microsoft raises its January offer of $31 a share. If Microsoft backs off, Yahoo's shares will likely fall 50 cents from their current $26.80 price; they traded at $19.18 before the Microsoft offer. Meanwhile, Yahoo may continue its search advertising venture with Google—which has already seen success and encouraged some at Yahoo to refuse Microsoft's offer.