Microsoft on Saturday said it will no longer be pursuing Yahoo after Yahoo rejected the company’s improved bid that included an extra $5 billion. Microsoft’s final offer was $33 per share, or $47.5 billion; Yahoo said it would not accept anything lower than $37 per share. Microsoft CEO Steve Ballmer said in a statement “After careful consideration, we believe the economics demanded by Yahoo do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal.”
Yahoo’s stock plummeted over 20% this Monday morning from its close of $28.67 on Friday to $23.92 as a result of the bid rejection. Yahoo is currently considering a partnership with competitor Google, which could improve Yahoo’s profit and stock price. Reactions to rejecting Microsoft’s bid have been mixed inside Yahoo.